Pension Options
PSPP offers several pension payment options, each of which will pay you a monthly income for the rest of your life. Members are required to select the option that works best for you when you apply for your pension. Each option is expected to pay out the same amount of money over your lifetime. Excess contributions, if any, will be refunded to you in addition to your selected pension option.
The options available to you depend on whether you have a pension partner when you retire.
Pension Options if You Have a Pension Partner (Joint Lifetime Options)
If you have a pension partner when you retire, you must choose a pension option that continues to pay a pension for as long as either of you is alive. This is called a Joint Lifetime pension. This means if you pass away first, your pension partner will continue to receive a pension for their lifetime.
If you would like to choose a pension option that pays for your lifetime only, your pension partner can choose to complete a Pension Partner Waiver, giving up any right to a survivor pension.
| Pension Option Name | Member Pension Payment Duration | Survivor Pension Duration | Reduction on Death of Member or Pension Partner | Guaranteed Term | |
|---|---|---|---|---|---|
| Joint Lifetime Guaranteed at Least 5 Years | Lifetime | For survivor's lifetime | No reduction | ||
| Before January 1, 2021 | Joint Lifetime Reduced by 1/3 Guaranteed at Least 5 Years | Lifetime | For survivor's lifetime | Reduced by 1/3 upon first death. Pension will be 2/3 of the original amount | Before January 1, 2021 |
| After December 31, 2020 | Joint Lifetime Reduced by 1/3 Guaranteed at Least 5 Years | Lifetime | For survivor's lifetime | Reduced 1/3 only upon death of member | After December 31, 2020 |
Joint Lifetime Guaranteed At Least 5 Years
This option is paid for the lives of you and your pension partner. When either you or your pension partner pass away, the survivor will continue to receive the same amount of pension for life.
If both you and your pension partner pass away within five years of starting your pension, any payments remaining in this period will be paid to your chosen beneficiary or estate.
Joint Lifetime Reduced by 1/3 Guaranteed At Least 5 Years
This pension is payable for the lives of you and your pension partner. If you die before your pension partner, the monthly payment to your pension partner is reduced by 1/3. This reduced pension will continue to be paid for their life. Your monthly pension will not be reduced if your pension partner dies before you.
If both you and your pension partner pass away within five years of starting your pension, any payments remaining in this period will be paid at the reduced amount to your chosen beneficiary or estate.
Historical Options
If you selected this option before January 1, 2021, this pension is payable for the lives of you and your pension partner. If either one of you die, the surviving spouse pension will be reduced by 1/3.
Pension Options if You Do Not Have a Pension Partner (Single Lifetime Options)
The Single Lifetime pension options are paid to you for as long as you live. These options can only be chosen if you do not have a pension partner at retirement, or if your pension partner chooses to complete a waiver and gives up any right to a survivor benefit.
| Pension Option Name | Member Pension Payment Duration | Guaranteed Term Benefit Paid to Chosen Beneficiary(ies) or Estate on Death of Member |
|---|---|---|
| Single Lifetime | Lifetime | None |
| Single Lifetime Guaranteed At Least 5 Years | Lifetime | 5 years from pension start date |
| Single Lifetime Guaranteed At Least 10 Years | Lifetime | 10 years from pension start date |
| Single Lifetime Guaranteed At Least 15 Years | Lifetime | 15 years from pension start date |
Single Lifetime (with No Guaranteed Term)
This option is paid for your lifetime. Once you pass away, your pension payments stop. No further payments will be made to any beneficiary(ies) or estate after your death.
Guaranteed Term Options
These pension options are paid to you for as long as you live. If you pass away before the end of the guaranteed period, the beneficiaries you’ve chosen, or your estate will continue to receive payments until the end of the guaranteed period.
Did you know?
If you marry for the first time, remarry, or begin a common-law relationship after retirement, you may be able to apply to provide your new spouse with a monthly pension if you pass away first. Time limits and conditions apply. Please contact the Member Services Centre to discuss your situation.
If your application to provide survivor benefits to your new spouse is approved, your pension will be adjusted to reflect the cost of providing this benefit. The adjustment will be made based on your age and the age of your spouse at the time the choice is made