Pension division reform and fifth edition Q+A updates
January 3, 2025
BY Maria Michouris
BCLI is pleased to note that on January 1, 2025, sections 8, 9, 11 to 14, and 17 to 20 of the Family Law Amendment Act as well as the Division of Pensions Regulations came into force. This Act implemented BCLI’s recommendations on reforms to part 6 of the Family Law Act and the Division of Pension Regulations.
Changes to part 6 of the Family Law Act included clarifying and modernizing law on: locked-in retirement accounts and life income funds; private annuities; assignment of survivor benefits; calculation of commuted value; and, administrator fees.
Further, changes to the Division of Pensions Regulation included: requiring the plan administrator to annually notify a limited member who has not yet received benefits of the earliest date of the limited member’s pension eligibility; raising the maximum administrative fee for registering the spouse as a limited member of the plan and for transferring a proportionate share of the member’s defined contribution account to the credit of the spouse; revising forms P1-4 and P6-9; and, repealing form P5.
BCLI has continued its commitment to improving family law in BC through its Pension Division Questions and Answers series. The Q+A is a definitive guide on navigating the complex legal issues that arise when a spousal relationship breaks down and the family property to be divided includes benefits in a pension plan.
On December 19, 2024, the BCLI staff and volunteer editors met to discuss the 5th edition of Pension Division Q+A. At the meeting, the group determined that potential areas for review included:
- case law;
- terminology;
- annuities;
- prescribed forms;
- administrative fees;
- Family Law Act amendments;
- references to Rutherford v Rutherford (1981 CanLII 726 (BCCA), 127 DLR (3d) 658), a leading case prior to B.C. enacting pension-division legislation;
- industry developments; and,
- locked-in retirement accounts and life income funds.
The 5th edition Q+A will be an important guide for navigating recent legislative changes, new case law, and evolving pensions practice.
Quick links:
- Bill 17, Family Law Amendment Act, 2023 (first reading)
- Report on Pension Division: A Review of Part 6 of the Family Law Act (PDF)
- Pension Division Questions and Answers 5th Edition Webpage
- BCLI Blog “BCLI Pension Division Report Recommendations Implemented”
- BCLI Blog “BCLI welcomes pensions division reforms”
