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
• A joint life pension of less than 100% with no guarantee, or 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 this option, your full lifetime monthly pension payment will continue to your spouse for their lifetime.

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.

A joint life pension of less than 100% with no guarantee, or 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. If you choose a guarantee period, 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 a specified percentage of your monthly pension for the rest of their life
• If you die after the end of the guarantee period, your spouse will receive a specified percentage 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, the recipient of the remaining guaranteed payments depends on which of you dies later:
  • if you are the last survivor, your pension benefit will be paid as a lump sum to your named beneficiary(ies)
  • if your spouse is the last survivor, your pension benefit will be paid as a lump sum to your spouse's estate

Why choose a joint life pension of less than 100%?

• It provides a larger income during your lifetime than the 100% joint life option.
• All joint life options leave a continuing lifetime monthly pension to your spouse after you die. This is important if your spouse needs the income. However, the lower the joint life percentage chosen, the less your surviving spouse will receive.

Important things to keep in mind:

• If you die after the guarantee period expires, your spouse will only receive the portion of your pension that you specify (i.e., 80, 60, 40 or another percentage)
• If you have a spouse, you are required to select a pension option that ensures a minimum of 60 per cent of your monthly pension will go to your spouse on your death – unless your spouse gives up that right by signing a spousal waiver