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Warning: Pension splitting for 2007

March 29, 2026

Consider all your benefit programs before splitting your
pension. There may be adverse consequences.

Pension splitting might affect the care cost of a
retirement home or nursing home. Care facility costs are
calculated based on the net income of the taxpayer. The
calculation for 2009 would be based on the net income of
the recipient in
2007.

If you are involuntarily separated because one spouse lives
in a care facility, the benefit of splitting the pension
income may be lost. Why? GIS (Guaranteed Income
Supplement) is calculated based on individual income rather
than combined income. If the lower income spouse in the
retirement home has increased income due to Pension
splitting, their GIS may reduce by 50 cents on the dollar.

Review your situation and consider what other benefit
programs you are entitled to are calculated based on Net
income on Line 150 before automatically splitting your
pension.

For more information about pension splitting and Form T1032
to elect to split your pension, check out what CRA has to
say about it on their website page about Pension Splitting:
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/pnsn-splt/menu-eng.html

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