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Survivor Benefit

The employee must decide whether the spouse will receive a pension should the employee die. The employee must therefore choose one of the following options:

  • A pension with a 60% survivor benefit, which means that 60% of the pension that would have been payable to the retiree will be paid to the spouse following the retiree’s death.

For example, a retiree is receiving a level pension of $2,000 per month at the time of his death. If the survivor option is in effect on the date of death, the spouse will receive $1,200 per month.

Note: If the 10-year or 15-year guarantee period has not ended at the time of the retiree’s death, the spouse will receive 100% of the pension that the retiree was receiving until the end of the guarantee period.

OR

  • A pension without a survivor benefit, which means that no pension will be paid to anyone.

In this case, the spouse must sign the form waiving the 60% survivor option. If the employee does not have a spouse, he or she must sign the form for declaring marital status. These forms are attached to the Application for Pension Benefit form which the employee receives after submitting the Application for Retirement.

Note: If the 10-year or 15-year guarantee period has not ended when the retiree dies, a lump-sum benefit is paid to designated beneficiaries or to the retiree’s estate.

From January 1, 2005 to October 31, 2013, only the 50% or 60% survivor options were offered after expiry of the 5-year or 10-year guarantee period.

If an employee takes partial retirement, the employee may choose to receive a pension with or without a survivor benefit from the General Account. However, the option the employee chooses for that pension will also automatically apply to the pension from the Complementary Account when the employee applies to receive it.