Planning for your loved ones
Planning for your loved ones
If you pass away before retirement
Waiving survivor benefits
Within the 12 months leading up to your first pension payment, you and your qualifying spouse can choose to waive the right to survivor benefits. This choice must be made before pension payments begin.
Waiving this entitlement means your spouse will not receive a monthly survivor benefit if you pass away before him or her. Instead, HOOPP will pay any survivor benefits to your beneficiary when you pass away.
Since everyone’s personal and financial circumstances are unique, you may wish to seek out professional independent financial advice if you are considering waiving survivor benefits. Once pension payments begin, a waiver cannot be reversed. Please contact Member Services for more information.
If you pass away after retirement
With a qualifying spouse:
When you pass away in retirement, your spouse at the time of your retirement is entitled to receive 66 2/3% of your monthly pension, not including a bridge benefit, for the rest of his or her life. When you retire, you may choose to increase this benefit
to 80% or 100% of your monthly pension. These options will result in a reduction in your pension to reflect the additional benefit for your spouse.
If you pass away within five years of your retirement date, your surviving spouse will receive the same monthly benefit as you (not including the bridge benefit) for the rest of the five-year period. When the five-year period ends, your spouse will receive
66 2/3%, 80%, or 100% of your monthly benefit, depending on your choice at retirement. If both you and your spouse pass away before the end of the five-year period, the remaining payment will go to your beneficiary(s) or, if there are none, to your
estate.
It is important to note that the person who is your qualifying spouse when you retire is, by law, entitled to receive survivor benefits when you pass away, even if you later divorce or remarry, unless that entitlement is waived in the prescribed manner
prior to your retirement or upon the breakdown of the spousal relationship.
Without a qualifying spouse:
If you do not have a qualifying spouse at retirement and you pass away before receiving 15 years of payments, your beneficiary(s) will be eligible to receive a survivor benefit. Your beneficiary(s) can choose to receive this benefit as either:
- A continuation of your monthly pension payments, not including any bridge benefits, for the balance of the 15-year period, or
- A lump-sum payment representing the value of your remaining payments in the 15-year period. This amount is paid in cash and is taxable in the year it is received.
If you don’t choose a beneficiary(s), or your beneficiary(s) passes away before you, any benefits payable when you pass away will go to your estate as a lump-sum payment (less applicable withholding taxes).
If your beneficiary(s) also dies before 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.
Relationship changes after retirement
If you separate from your spouse after retirement, your spouse will still be entitled to receive a monthly survivor benefit after you pass away.
If you marry for the first time, remarry, or begin a common-law relationship after retirement, you may be able to apply to HOOPP to provide your new spouse with access to a post-retirement survivor benefit in the event that you pass away first. Time limits and conditions apply. Contact Member Services as soon as possible to discuss your situation.
If you are eligible to provide your spouse with survivor benefits and you choose to do so, your pension will be reduced to reflect the cost of providing this benefit. The reduction will be based on your age and the age of your spouse at the time the choice is made. Learn more about Relationship Changes and your pension.
This document provides a simplified overview of HOOPP's benefits based on the terms of the HOOPP Plan Text at the time of publication. From time to time, HOOPP may amend the HOOPP Plan Text. In cases where the information provided in this document differs from that contained in the HOOPP Plan Text, the HOOPP Plan Text will govern. More details, including the full HOOPP Plan Text and a complete description of the Plan and its benefits, can be found on hoopp.com.