55. Execution of the partition or transfer of the member’s benefits shall reduce his benefits as follows:
(1) where the benefits partitioned or transferred are part of the capital benefits, the value of those benefits shall be reduced by the sum paid to the spouse or transferred to the spouse’s account;
(2) where the benefits partitioned or transferred are part of the pension benefits,
– any retirement, disability or replacement pension being paid to the member at the date of valuation for the purpose of the partition or transfer of pension benefits is reduced, after having been, where required, re-determined under section 89.1 of the Act, by the proportion represented by the sum granted to the spouse over the value of the benefits of the member at the date of the valuation;
— any retirement, disability or replacement pension of which payment begins after the date of the valuation for the purpose of partition or the transfer of benefits must be reduced by the amount referred to in section 54 or, if payment of that pension begins on a date other than the date of normal retirement age, by a sum equal to that amount;
— any other benefits, with the exception of a phased retirement benefit and a benefit referred to in section 69.1 of the Act or in section 16.2, and any benefit or refund that must be paid or transferred must be reduced, up to its amount or value by the amount referred to in section 54 or the value thereof.
For the purposes of subparagraph 2 of the first paragraph, the amount referred to in section 54 must be adjusted to take into account any change to the normal pension registered or taking effect after the date of the valuation that would reduce the value of the benefits of the member at that date. Where the change has an effect on the amount of the normal pension, the amount referred to in section 54 must be adjusted in a proportion equal to the one that applies to the amount of the normal pension determined at the date it is valuated. Where the change affects a condition or a characteristic of the normal pension, the condition or characteristic thus modified must be applied to the portion of the pension that corresponds to the amount referred to in section 54.
In the case of a change to the normal pension that, pursuant to the second paragraph, would have increased the value of a member’s benefits as at the date of the valuation, the pension plan may provide that the member’s benefits be adjusted in accordance with the rules set out in that paragraph.
Furthermore, where pension amounts have been received between the date of the valuation for the purpose of the partition or transfer and the date of its execution, the pension paid on the latter date must be reduced in proportion to the accrued value of the amounts received in excess of the value of the pension paid, those values having been determined using the assumptions provided for under the second paragraph of section 37.
The pension plan may provide for reducing the member’s benefits in a different manner, provided that manner leads to a lesser reduction of such benefits.
O.C. 1158-90, s. 55; O.C. 1681-97, s. 20; O.C. 173-2002, s. 46; O.C. 1073-2009, s. 37; O.C. 1183-2017, s. 2911.