Arrears Split pension amounts not deducted from a retired member’s pension payments from the FLV Date to the settlement month (plus interest) spread over the assumed lifetime of the member. Arrears increase the permanent deduction to the member’s pension payable to the former spouse over the remaining life of the member – they are not payable as a lump sum.
“Best Five” The annual average of the 60 consecutive months during which the member's contributory earnings were at their highest. It does not include any overtime pay or most lump sum payments. It may, however, include earnings from a period of that was transferred-in from another registered pension plan.
If the member has less than five years of , we use actual credited service to calculate average earnings.
Carve Out The estimated future FLV amount that will be deducted from a member’s OMERS pension. The estimate is updated annually and provided to the member on their Pension Report Supplement until retirement.
Equalization Payment A family law term that refers to the “payment” one spouse will owe the other to account for the difference between the net family property they accumulated during their spousal relationship. The FLV amount is used for both the equalization of net family property under the Ontario Family Law Act (FLA) and the division of pensions under the Ontario Pension Benefits Act (PBA).
Family Law Value (FLV) The calculation of the pension assets earned during the spousal period. The FLV represents the pension value that the parties will need to include in net family property.
If the pension is divided, the settlement from OMERS is limited to 50% of the FLV. Note: If arrears are included, a retired member's pension may be reduced beyond 50%.
Family Law Valuation Date (FLV Date) The separation date agreed to by the parties for the purpose of dividing family property. For post-2012 rules, the FLV Date must be set out in the Application for Family Law Value (FSCO Family Law Form 1) and in the corresponding court order, family arbitration award or domestic contract (if applicable).
Former Spouse The non-member spouse of an OMERS member, whether or not the separation or divorce is officially completed. If both parties are OMERS members, the former spouse is the spouse referred to in Part D of the FSCO Family Law Form 1.