If you pass away before retirement

With a qualifying spouse:

Your qualifying spouse will receive spousal benefits which they can choose to receive as:

• a lump sum equal to the commuted value of your pension. This amount can be taken either as a cash payment which is taxable in the year received, or can be transferred to a RRSP or RRIF on a tax-sheltered basis, or
• a monthly survivor pension that begins immediately and is payable for the rest of his or her life, or
• a deferred monthly survivor pension, which can begin at any time before December of the year in which he or she turns 71.

Without a qualifying spouse:

If you pass away before retirement and do not have a qualifying spouse, or if spousal benefits have been waived, the person(s), or organization you name as your designated beneficiary is paid a benefit equal to the commuted value of your pension at the date of your passing. This amount can only be received as a lump sum cash payment that is taxable in the year received.

Updating your spouse and beneficiary information

It is important to notify HOOPP of changes to your spousal status, and keep your pension beneficiary information up-to-date. To designate a spouse or beneficiary or make changes to your information, please complete the Spousal and Beneficiary Designation Form and send it to HOOPP. If you have any questions, or to get a copy of the form, please call Client Services. Please be aware that spouse and pension beneficiary information cannot be updated over the phone.

If you pass away after retirement

With a qualifying spouse:

Your qualifying spouse will be entitled to a monthly lifetime pension equal to at least 60% of your monthly pension, excluding any early retirement benefits, when you pass away.

When you retire, you have the option of increasing your spouse’s survivor pension to 80% or 100% of your lifetime pension. If you choose either of these options, your pension will be subject to an actuarial reduction based on the age of your spouse.

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 (180 payments), your beneficiary(s) will receive your monthly pension, excluding any early retirement benefits, for the balance of the 15-year period. 

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. 

What does commuted value mean?

The lump sum value of your earned pension is referred to as your commuted value. This is the estimated amount of money HOOPP would have to set aside today to pay your pension in the future. The commuted value changes based on factors such as age, life expectancy, inflation, and interest rates.

If you have a new spouse in retirement

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. if you are considering waiving spousal benefits, contact us.