Carleton University Retirement Plan – changes to pre-retirement death benefits

The law in Ontario has changed concerning the payment of benefits from the Carleton University Retirement Plan in the event of your death before you begin to receive your pension (pre-retirement death). The change has occurred because of the Ontario Court of Appeal decision in a case called Carrigan v. Carrigan Estate. This change could apply to you if you are earning (or have earned) your pension from employment in Ontario (you are an Ontario Member), and if your pension has not yet commenced.

Formerly, for Ontario Members, in the event of your pre-retirement death, the death benefit would be paid:

• To the spouse you are living with at that time (common law or married) in priority over any other person
• To your designated beneficiary if you are not living with a spouse, or if the spouse you are living with has waived priority; or
• To your estate, if you are not living with a spouse or if the spouse you are living with has waived priority, and if you have no surviving designated beneficiary.

Now, for Ontario Members, the rights of your common law spouse have changed if you have a common law spouse and you also have a married spouse from whom you are separated but not divorced.

Under the new Ontario rules pre-retirement death benefits will be paid:

• To your married spouse if you are living together at the time of your death;
• If you are living with a common law spouse at the time of your death:
  - To your common law spouse if you do not also have a married spouse from whom you are separated but not divorced;
  - To your designated beneficiary if you also have a married spouse from whom you are separated but not divorced;
• To your designated beneficiary if you have no spouse who is eligible or if your eligible spouse has waived priority; or
• To your estate if you have no eligible spouse and no surviving designated beneficiary.

If you are an Ontario Member with a common law spouse, and you also have a married spouse from whom you are separated but not divorced, and if you want your Carleton University Retirement Plan pre-retirement death benefits to be paid to your common law spouse, your common law spouse must be your designated beneficiary. You should review your beneficiary designation on your annual statement and make any desired changes. You are encouraged to obtain professional advice especially if you have an agreement or court order concerning family property or have special estate planning needs.

You can complete a new designation of beneficiary form by submitting the Pension Beneficiary Change Form to Human Resources or accessing it at the following website.

Please remember that it is always important to notify the Pension Department of Human Resources whenever you have a life change. If you have any questions, call Neil Courtemanche or Jean Ouellette at 520-2600 ext. 3634.

Definition of common law spouse

A person who, at the date of determination, is not married to the Member but has been living with the Member in a conjugal relationship:

i. continuously for a period of not less than three years; or

ii. in a relationship of some permanence if they are the natural or adoptive parents of a child as defined in the Family Law Act, 1986.

This notice provides you with general information for illustration purposes and is based on the current provisions of the applicable legislation and the Carleton University Retirement Plan, which could change in the future. Your particular situation at the time of death may also lead to a different result.