Ends Marriage-After-60 Pension Restrictions

Summary#

This bill removes the “marriage-after-60” (or post‑retirement marriage) restrictions in several federal pension laws. It lets a surviving spouse or common‑law partner get survivor benefits even if the couple married or began living together after the member turned 60 or after retirement. It also updates how children’s allowances are calculated when there is no eligible survivor and makes related technical changes. There is no explicit start date in the bill; changes would apply when it becomes law.

• Allows survivor benefits regardless of when the relationship began for federal public service, Canadian Forces, RCMP, judges, and MPs (Bill: repeals CFSA s.25.1, PSSA s.13.1, RCMPA s.14.1; Judges Act s.44.2; MPRAA ss.25, 45).
• Updates “survivor” definition for MPs to include a spouse at death or a partner who lived with the member in a conjugal relationship for at least 1 year before death (MPRAA s.2(1) amended).
• Cancels prior pension reductions that retirees elected to secure benefits for a post‑retirement spouse; those reductions are deemed revoked on the in‑force date (Transitional provisions for CFSA, Judges Act, MPRAA, PSSA, RCMPA).
• Ensures federally regulated private pension plans provide joint‑and‑survivor pensions if a spouse exists when payments start or at any time after they start (PBSA s.22(2) amended).
• Clarifies entitlement for survivors to variable benefits in federally regulated defined contribution plans and pooled registered pension plans (PBSA s.16.3(1); PRPP Act s.49).
• Adjusts children’s allowance formulas when there is no survivor entitled to benefits (e.g., CFSA s.25(1)(b), PSSA s.12(4), RCMPA s.13(1)).

What it means for you#

• Households (surviving spouses/partners)

  • If you marry or start a conjugal common‑law relationship with a federal pensioner after they turn 60 or after they retire, you would be eligible for survivor benefits after their death. This applies to public service, Canadian Forces, RCMP, judges, and MPs (Bill: multiple repeals noted above).
  • For MPs, you qualify as a survivor if you were married to the MP at death or lived together in a conjugal relationship for at least 1 year immediately before death (MPRAA s.2(1) amended).
  • If there is no eligible survivor, children’s benefits may be higher than standard rates, up to the new caps set in each act (e.g., up to 2/5 per child and 8/5 total of the basic allowance when no survivor is entitled) (CFSA s.25(1)(b), (2); PSSA s.12(4); RCMPA s.13(1)).

• Current retirees in affected federal plans

  • If you previously chose to reduce your own pension to provide a benefit for a spouse you married after retirement or after age 60, that reduction would be cancelled on the day the law comes into force (Transitional provisions).
  • Your spouse or partner would be eligible for survivor benefits without your pension having a reduction in place (repeal of election provisions and transitional deeming rules).

• Active federal employees, Canadian Forces, RCMP, judges, and MPs

  • Future survivor benefits for spouses/partners will not depend on your age at marriage or whether you married after retirement (Bill: repeal of “marriage‑after‑60” limits across plans).
  • Court‑ordered support can be diverted from certain judicial annuities and related benefits, as clarified in the Judges Act (Judges Act s.52(1) amended).

• Private‑sector workers in federally regulated industries (banks, telecom, interprovincial transport) with pensions under the PBSA

  • Your plan must pay a joint‑and‑survivor pension if you have a spouse/common‑law partner when your pension starts or if you acquire one at any time after it starts, subject to existing waiver rules in PBSA s.25(7) (PBSA s.22(2) amended).
  • If you have a defined contribution plan with variable benefits, your surviving spouse/partner is entitled to the remaining account as variable payments, subject to regulations and tax rules (PBSA s.16.3(1)).

• PRPP (pooled registered pension plan) members

  • On death, your surviving spouse/partner is entitled to variable payments from your account, subject to regulations and tax rules (PRPP Act s.49 amended).

Expenses#

• Estimated net cost: Data unavailable.

• Fiscal note or official costing: Data unavailable.

• Mechanisms in the bill that affect costs:

  • Expands survivor eligibility to include post‑retirement and post‑age‑60 marriages, which increases future survivor payouts (Bill: repeal of “marriage‑after‑60” limits across CFSA, PSSA, RCMPA, Judges Act, MPRAA).
  • Cancels prior pension reductions elected to fund post‑retirement survivor benefits; retirees’ pensions would increase while survivors remain eligible, which raises plan liabilities (Transitional provisions).
  • Requires federally regulated private plans to provide joint‑and‑survivor benefits even if a spouse/partner is acquired after pension start, which may increase plan costs and administration (PBSA s.22(2)).
  • Administrative updates for plan rules, systems, and communications across affected plans. Data unavailable.

Proponents' View#

• Improves equal treatment by removing age‑at‑marriage and post‑retirement timing limits, so survivors are treated the same regardless of when the relationship began (Bill: repeal of CFSA s.25.1; PSSA s.13.1; RCMPA s.14.1; Judges Act s.44.2; MPRAA ss.25, 45).
• Reduces complexity by eliminating optional reduction elections and aligning rules across major federal plans; transitional clauses automatically revoke past elections (Transitional provisions).
• Clarifies survivor rights in federally regulated DC pensions and PRPPs, making sure the spouse/partner can receive remaining funds as variable payments under set rules (PBSA s.16.3(1); PRPP Act s.49).
• Strengthens legal clarity for diversion of payments to satisfy support orders for judicial pensions (Judges Act s.52(1) amended).
• Updates children’s allowance rules consistently across acts to address cases with no eligible survivor (CFSA s.25; PSSA s.12, 12.1; RCMPA s.13).

Opponents' View#

• Increases unfunded liabilities and ongoing costs for federal pension plans by expanding survivor eligibility and cancelling prior reduction elections; could require higher employer or member contributions. Data unavailable (Bill: expanded eligibility; Transitional provisions).
• Creates retroactive effects for retirees who elected reductions, granting higher current pensions without the prior trade‑off, which may raise fairness concerns among members who paid for survivor coverage under older rules (Transitional provisions).
• Imposes operational challenges on private plans regulated by the PBSA: converting a single‑life pension already in pay to a joint‑and‑survivor form after a later marriage may require complex plan redesign and administration (PBSA s.22(2) amended).
• May increase disputes or verification burdens about survivor status, such as proving common‑law relationships and cohabitation periods at death, which could delay payments (MPRAA s.2(1) amended; PBSA survivor entitlement).
• Lacks published costing, making it hard for legislators to weigh trade‑offs and plan funding impacts before implementation. Data unavailable.