Arrears represent the split pension that was not deducted from the FLV Date to the settlement month (plus interest). It is not payable in a lump sum manner; rather, it increases the deduction to the member’s pension payable to the over the remaining life of the member.
OMERS will include arrears in the division from the FLV Date to the month the division is administered unless the marriage breakdown document specifies that the division of pension is not to include arrears.
If the marriage breakdown document is silent or unclear, OMERS will calculate and include arrears. Language such as “the parties will divide the pension only on a go-forward basis” will not be considered sufficient to exclude arrears. This is required under the governing framework.
Once the pension, including arrears, has commenced payment, if further adjustments are required, OMERS will only adjust the division to exclude arrears on a prospective basis. Any payments already made will be up to the parties to manage. We would require an amendment or clarification to the marriage breakdown document to make this change.