Choose your pension option

This important decision will determine the amount of your lifetime monthly pension payments and the amount your spouse or beneficiaries may receive when you die.


Joint life pension options

A joint life pension is a monthly pension guaranteed for your lifetime and your spouse's lifetime. If you die before your spouse, they will receive your monthly pension or a portion of your monthly pension for the remainder of their life.

Your joint life pension options are:

  • 100% joint life with a 5-, 10- or 15-year guarantee
  • 60% joint life with a 5-, 10- or 15-year guarantee
If you have a spouse,   you are required by law to choose a joint life pension option that leaves your spouse at least 60 per cent of your monthly pension payments should you die first. Your spouse can sign a waiver to give up their right to this benefit, allowing you to select less pension protection (or no pension protection) for your spouse.
 

You cannot name anybody other than your spouse (or a former spouse, if a court order or written agreement gives them an entitlement) for a joint life option.

This choice results in a lower monthly payment than a single life pension option, because the pension is guaranteed for two lives.  If your spouse is younger than you, your pension payments will be smaller, as it is assumed the pension will be paid for longer.

100% joint life with a 5-, 10- or 15-year guarantee

With this option, your full lifetime monthly pension payment will continue to your spouse for their lifetime. Your pension is also guaranteed for a set length of time (5, 10 or 15 years), should both you and your spouse die within that period.

  • If you die before your spouse, the plan will continue to pay your spouse your lifetime monthly pension for the rest of their life
  • If both you and your spouse die before the end of the guarantee period, your pension will be paid to the named beneficiary (or beneficiaries) of the last survivor for the remainder of the guarantee period. They will receive either the continuation of your monthly pension or a lump-sum payment.

Why choose a 100% joint life pension?

  • This option pays your full lifetime monthly pension to your spouse after you die. This may be an important consideration if your spouse has no other significant sources of retirement income.

60% joint life with a 5-, 10- or 15-year guarantee

With this option, a portion of your lifetime monthly pension payment will continue to your spouse for their lifetime. Your full pension is also guaranteed for a set length of time (5, 10 or 15 years).

  • If you die within the guarantee period, your spouse will receive 100 per cent of your monthly pension for the remainder of the guarantee period only. After that, they will receive 60 per cent of your monthly pension for the rest of their life.
  • If you die after the end of the guarantee period, your spouse will receive 60 per cent of your lifetime monthly pension for the rest of their life
  • If both you and your spouse die before the end of the guarantee period, your pension will be paid to the named beneficiary (or beneficiaries) of the last survivor for the remainder of the guarantee period. They will receive either the continuation of your monthly pension or a lump-sum payment.

Why choose a 60% joint life pension?

  • Your spouse will continue to receive a lifetime monthly pension after you die
  • The 60% joint life option provides you with a higher monthly pension payment during your lifetime than the 100% joint life option

Important things to keep in mind

  • Only 60 per cent of the pension will continue to your spouse after the guarantee period expires

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