04 November 2018

Canada Pension Plan Credit Splitting

The Collaborative Divorce Vancouver Society recently featured a presentation by Doug Runchey on the factors that go into the analysis of Canada Pension Plan (CPP) credit splitting that he does through his consulting business DR Pensions Consulting.

It is important to consider whether CPP credit splitting on divorce is a good idea in an individual family’s situation.  The CPP rules are complex and it is not always clear whether a split benefits both parties when their marriage has dissolved.

In some cases a credit split will not result in a benefit to either party, or may in fact cost one party more than the benefit to the other.  Situations involving parties already retired, a child-rearing drop out, one party with a disability, or periods of time where individuals lived outside of Canada require special attention and analysis.

Parties may obtain their CPP Statements of Contribution through their My Service Canada online account or by printing out and mailing in the Application.

The government has a useful Canada Pension Plan Credit Splitting Guide for Legal Professionals with details on how credit splitting works.  Appendix I contains a table with the conditions of eligibility, including the minimum period of cohabitation and separation and time limits for applying.