Ashley Harmon

This appeal addressed whether pension payments divided at source for family law purposes can continue to a non-member spouse's estate after their death for the balance of the retired member spouse's life.

The motion judge had ruled this was precluded by the Pension Benefits Act (PBA).

The Court of Appeal disagreed, finding that nothing in the PBA, Family Law Act (FLA), or the Family Law Matters Regulation (O. Reg. 287/11) prevents such an arrangement.

The court emphasized that the "Family Law Matters" sections of the PBA (ss. 67.1-67.9) and the Regulation govern these issues, not general pension provisions.

The appeal was allowed, clarifying that such continuation is permissible if provided for by agreement, court order, or arbitration award.

The applicant husband, who suffers from a terminal illness, brought a motion seeking an order that his portion of his wife's monthly pension benefit be paid to his estate if he predeceases her.

The court dismissed the motion, finding that the Pension Benefits Act strictly governs the division of pensions and prohibits the assignment or bequest of pension benefits to an estate.

The statutory scheme guarantees that upon the death of the spouse, the remaining pension reverts back to the retired member.