Forms of payment

Note if you retire before age 65
If you retire before age 65, you may replace part of your lifetime (post 65) pension with a temporary pension that ends at age 65, at the latest. You choose how much of your lifetime pension you wish to convert to a temporary pension; the amount, however, cannot exceed 40% of the YMPE of the year in which the payment is made.

Unless you choose another form of payment, the following will automatically apply when you retire:

• If you do not have a spouse when you retire
  You will receive a lifetime, monthly pension with a 10-year guarantee.
  
  
• If you have a spouse when you retire
  You will receive a permanently reduced lifetime, monthly pension so that, upon your death, your spouse can receive a lifetime pension equal to 60% of your pension. This form of payment is called the 60% joint and survivor pension and is required by legislation when you have a spouse

When you retire with this option, you can choose whether you want pension payments to be guaranteed at 60% for 5 years or at 100% for 10 years.

You may choose any form of payment. However, please take note of the following important considerations:

• If you have a spouse and you wish to choose a form of payment that gives your spouse benefits that are lower than the 60% joint and survivor pension or no benefits at all, legislation requires that you obtain your spouse’s waiver in writing.
• The dollar amount of your pension is initially based on the lifetime pension with a 10-year guarantee. If you choose another form of payment, the dollar amount of your pension will be adjusted to take into account the fact that you have requested lower or greater benefits payable after your death.

Your annual pension is paid in 12 monthly installments.

In any event, regardless of the form of payment you choose, the total value of your pension is the same under each form.

You must choose your form of payment before you retire.

When you near retirement, Pension Services will provide you with more details on available forms of payment and the necessary documents.

You can change your selected form of payment anytime before your pension begins.

You are not allowed to change your form of payment once you retire, except in the event of a marriage breakdown.