Pensions are a family asset
Under the Family Law Act of Newfoundland and Labrador, pensions are considered a matrimonial asset. This means that the value of the pension you earned during your marriage may be included, by law, in the total value of family assets when a relationship ends. However, it does not mean that your pension benefits must be divided as part of the final division of assets. You may agree to allocate other assets to balance the overall division of family assets, leaving your pension unaffected.
If your pension is shared, it will reduce the value of your pension benefit, but it will not affect when you are eligible to retire, which is based on your age and years of pensionable service.
Because each situation is unique, we strongly encourage members to consult a lawyer who is well‑versed in family law. A qualified legal advisor can explain how the law applies to your circumstances and help you understand your options and the implications for family assets, property, and taxes.
Request a calculation of your pension benefit
When seeking legal advice, the first step is typically to request a valuation of your pension benefits from TPPC. We will need the marriage date and separation date to accurately reflect the pensionable service earned during the marriage.
How pension entitlements are determined
At separation, your former spouse may be entitled to up to 50% of the pension accumulated during the marriage.
If the pension is divided, the former spouse can choose either
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- Lump sum, a share of the commuted value; or
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- Monthly pension, payable when the teacher becomes eligible to retire
The former spouse will continue to receive their share of the pension until death. If the former spouse dies, that portion does not revert to the teacher. If you are already retired when your relationship breaks down, the lump-sum option is not available. In this situation, a former spouse would be entitled only to a monthly pension.
Review your beneficiary designation
Following a separation or divorce, it’s also important to review and update your beneficiary designation. If your former spouse remains listed as your beneficiary, they may receive pension benefits upon your death. Updating your beneficiary designation once your separation or divorce is final can help ensure your wishes are reflected.
We’re here to help you with the process
While we cannot provide legal or financial advice, we are here to help you navigate the administrative process and explain the documentation required under the Teachers’ Pension Plan. We encourage you to contact us if there is a change in your relationship and visit our website for detailed information.
Email: memberservices@tppcnl.ca Phone: 709-793-8772 or 1-833-345-8772
In-person: 140 Kelsey Dr., Suite 300, St. John’s, NL