The normal form of pension benefit provides monthly payments to you payable for your retired lifetime ending on the first of the month in which your death occurs but guaranteed for a minimum of five years (i.e. 60 payments). This means that the pension benefit is payable as long as you live and, if your death occurs before all the guaranteed payments have been made, then pension payments would continue to be paid to your beneficiary for the remainder of the five year guaranteed period.
However, if you are married or in a common-law relationship at the time your pension benefit commence to be paid, both the Plan and the pension law require that the pension be paid in a joint and survivorship form, which continues to your spouse after your death, for the rest of the spouse's life, in an amount not less than 60% of the pension you were receiving. The normal form of pension described above will be actuarially reduced to reflect this requirement.
A spouse may waive rights to this entitlement by completing a waiver form, in which case you may receive the pension in the normal form or in an optional form and your spouse is not entitled to this survivor benefit.
As mentioned above, if you have a spouse at the time your pension benefit commences, your choice of the type of pension will be restricted, unless your spouse completes a waiver form. If you do not have a spouse at the time your pension benefit commences or if your spouse completes a waiver form, you may choose any one of the optional forms of pension instead of the normal form. The full amount of pension is payable if you elect the normal form while, if you elect one of the optional forms, the amount of pension will be adjusted to reflect the value of the option chosen.
The amounts payable under these optional forms will be the actuarial equivalent of the amount payable in the normal form. This means that, for some options, the initial amount of pension benefit you are entitled to receive in the normal form may be reduced to reflect the fact that a benefit will continue to your spouse, rather than ceasing on your death, or will continue to a beneficiary if you die before expiration of the guaranteed period.
The options are:
- Lifetime Pension with a Guarantee Period
A monthly pension benefit is payable as long as you live. However, should you die before the end of the guarantee period of 10 years, the monthly pension benefit will continue to your spouse, beneficiary or estate for the balance of the guarantee period. - Joint and Survivorship Pension
A monthly pension benefit is payable to you for your lifetime. After your death, a monthly pension benefit of the amount that you had been receiving will be paid to your surviving spouse for as long as he or she lives. - Integration with Old Age Security/Canada Pension Plan
If your pension commences before age 65, your pension may be increased in the months before age 65 and decreased after age 65 when the Old Age Security/Canada Pension Plan benefits start. - Lifetime Pension without a Guarantee Period
A monthly pension benefit is payable only during your lifetime and will cease on your death without any guarantee period.
Every reasonable effort will be made to have the optional types of pension explained to each eligible person upon application for retirement benefits, but the Plan participant is responsible for obtaining independant legal advice.