Pension Options

PSPP offers several pension payment options, each of which will pay you a monthly income for the rest of your life. You will select the option that works best for you at the time of your retirement. Each option is expected to pay out the same amount of money over your lifetime.

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 5 years from pension start date
Joint Lifetime Reduced by 1/3 Guaranteed at Least 5 Years Lifetime For survivor's lifetime

Reduced by 1/3

Pension paid will be 2/3 of the original amount

5 years from pension start date

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 option is paid for the lives of you and your pension partner. When either you or your pension partner pass away, the monthly pension paid to the survivor will be reduced by 1/3. This means that if your pension partner passes away before you, your pension will be reduced to 2/3 the original pension amount.

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.

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 Pension Partner 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.

Coordination

Coordination is an option in PSPP that can allow members who retire before age 65 to receive a temporary pension payment increase. This option temporarily provides a higher pension payment amount if you retire before age 65, but results in a permanently reduced pension at age 65 when:

  • the increase stops; and
  • a further, permanent reduction begins.

Choosing coordination may impact the pension left for your pension partner or beneficiary after you pass away.

More on Coordination

More on Death After Retirement