My Pension
Survivor Benefits
Loved ones play a significant role in our lives and some of them depend on Plan members like you for income security. This is why HOOPP provides a range of valuable survivor benefits – whether our members pass away before or during retirement.
Death of a non-vested member before retirement (less than 2 years in the Plan)
If a member passes away prior to being vested, his or her primary beneficiary receives the member’s contributions to HOOPP with interest.
Death of a vested member before retirement (more than 2 years in the Plan)
With a qualifying spouse
The qualifying spouse can choose to receive either:
- a benefit equal to the commuted value of the member's pension at the date of the member's death. This amount can be received as a lump sum cash payment which is taxable in the year received or may be transferred to a RRSP on a tax-sheltered basis, or
- an immediate or deferred lifetime pension
Without a qualifying spouse
The primary beneficiary of a deceased member without a qualifying spouse is paid the commuted value of the member’s pension. Those funds are taxable in the year received.
For more information on the new rules on vesting effective July 1, 2012, please click here.
Death after retirement
With a qualifying spouse
Unless you have waived post-retirement spousal benefits, your spouse is automatically entitled to a lifetime pension equal to 60% of what you are receiving at the time of your passing, excluding any early retirement benefits.
At the time of your retirement, you also have the option of increasing your spouse’s pension to 80 or 100% of the lifetime pension you will receive, subject to an actuarial reduction in your pension based upon the age of your spouse at retirement. That pension will not include any early retirement benefits.
Without a qualifying spouse
If you do not have a qualifying spouse at the time of your retirement, or you and your spouse have waived the survivor pension, you can name one or more persons or organizations as your non-spouse beneficiary.
If you pass away before receiving your monthly pension for 15 years (180 payments), your beneficiary receives your monthly pension – excluding any early retirement benefits – for the balance of the 180-payment period.
If your beneficiary also dies before the 180 payments have been made, the value of the remaining pension payments – excluding any early retirement benefits – will be paid to your beneficiary's estate as a lump sum.
Commuted value
The commuted value of a member's pension is the estimated amount of money HOOPP needs now to pay the member's pension in retirement, based on the member's service and earnings to date. The commuted value fluctuates with changes in factors such as the member's age and interest rates.
Waiving spousal benefits pre- and post-retirement
Your qualifying spouse can elect to waive pre-retirement survivor benefits. In addition, within the 12 months leading up to retirement, you and your qualifying spouse can elect to waive the right to post retirement benefits. Once pension payments begin, a waiver cannot be reversed. Please contact HOOPP if you are considering waiving spousal benefits.
Shortened life expectancy
Members may be able to receive the value of their pension as a lump sum if they provide HOOPP with medical evidence that they face a shortened life expectancy. Please contact Client Services for more information.
