Pension Options

Any pension option you choose will pay you an income for the rest of your life.

There is no 'best' pension option. These choices are given so you can pick the one that works best for you. From the perspective of the Plan, they are all expected to pay out the same amount of money.

The options you can choose from depend on whether you have a pension partner when you retire.

A pension partner is how we refer to a spouse or partner, and is someone who:

  • you are married to and living separate and apart from for three or more years, or
  • you have lived with in a spouse-like relationship for 3 or more years , or
  • you have lived with for a shorter period but have a child with.*

*Definition of pension partner

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 that continues to pay for as long as either of you is alive. This is called a Joint Lifetime pension. If you pass away first, your pension partner will continue to receive a lifetime pension.

If you would like to choose a pension option that pays for your lifetime only, your pension partner can choose to sign a Pension Partner Waiver, giving up the right to a survivor pension.

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Pension Option Name Member Pension Payment Duration Survivor Pension Duration Reduction on Death of Member or Pension Partner Guaranteed Term Benefit Paid to Chosen Beneficiaries if Both Member and Pension Partner Pass Away
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 have deceased within five years of the start of your pension, any payments remaining in this period will be paid to your chosen beneficiary.

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 of the original pension amount.

If both you and your pension partner have deceased within five years of the date your pension started, any payments remaining in this period will be paid at the reduced amount to your chosen beneficiary.


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 sign a Pension Partner Waiver, and gives up any right to a survivor benefit.

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Pension Option Name Member Pension Payment Duration Guaranteed Term Benefit Paid to Chosen Beneficiaries on Death of Member
Single Lifetime Lifetime None
Single Lifetime Guaranteed At Least 5 Years Lifetime Guaranteed term is 5 years from pension start date
Single Lifetime Guaranteed At Least 10 Years Lifetime Guaranteed term is 10 years from pension start date
Single Lifetime Guaranteed At Least 15 Years Lifetime Guaranteed term is 15 years from pension start date

Single Lifetime
This option is paid for your lifetime. No payments are paid to anyone 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 guarantee period, the beneficiaries you have chosen will continue to receive payments until the end of the guarantee period. When you see your own pension options you will notice that the longer the guaranteed term is, the smaller the amount of pension.

Single Lifetime Guaranteed At Least 5 Years

A pension paid for as long as you live. If you die within 5 years of starting your pension, the beneficiaries you have chosen will continue to receive pension payments until the end of the 5-year guaranteed period.

Single Lifetime Guaranteed At Least 10 Years

A pension paid for as long as you live. If you die within 10 years of starting your pension, the beneficiaries you have chosen will continue to receive pension payments until the end of the 10-year guaranteed period.

Single Lifetime Guaranteed At Least 15 Years

A pension paid for as long as you live. If you die within 15 years of starting your pension, the beneficiaries you have chosen will continue to receive pension payments until the end of the 15-year guaranteed period.


Coordination
If you retire before age 65, you may be able to coordinate your pension. Coordination is a feature of LAPP which allows some members to receive a temporary increase to their pension until they turn 65.

I'd like to read more about Coordination