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HOOPP

Planning for your loved ones

Planning for your loved ones

Your HOOPP pension can help contribute to a stable, predictable income in retirement. Survivor benefits are a key feature of the Plan, and can help protect your loved ones whether you pass away before or after retirement. Here is what you need to know.

If you pass away before retirement

With a qualifying spouse:

If you pass away before retirement, your qualifying spouse is entitled to receive survivor benefits in priority to any beneficiary you have named. He or she  can choose to receive these benefits as:

  • A monthly pension that begins immediately and is payable for the rest of their life; or
  • A monthly pension that begins later. This deferred pension must begin no later than December 1 in the year your spouse turns 71. It is payable for the rest of their life, or
  • A lump-sum payment representing the value of your pension benefit. Your spouse can take this amount either in cash, which is taxable in the year it is received, or transfer it to his or her personal registered retirement savings plan (RRSP) or registered retirement income fund (RRIF) on a tax-sheltered basis.

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 will receive a lump sum cash amount representing the value of your pension benefit.*

*This amount is taxable income in the year in which it is paid and is subject to mandatory withholding tax.

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 use HOOPP Connect, or call Member Services to get a copy of the form that’s needed.

Please be aware that spouse and pension beneficiary information cannot be updated over the phone.

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.

When choosing a spousal benefit option at retirement, be sure to consider:
  • Do you expect your spouse will live longer than you?  
    Age, family history and health are factors when you consider how long you and your spouse will collect your pension. In some cases, the 66 2/3% option may be sufficient. However, you may want to consider increasing your spousal benefit to 80% or 100%.
  • Does your spouse have their own pension or other sources of retirement income?
    If they will be relying on your pension as their main source of income, you should consider the 80% or 100% options.
  • If you pass away first, will your spouse have sufficient income or savings to manage their current and future living expenses?
    Your HOOPP pension, your spouse’s pension, any CPP and OAS pensions and personal savings contributes to your household income in retirement. When you pass away, your government pensions will stop, and your spouse may have less to live on. HOOPP’s survivor benefits provide secure and reliable income that may become even more important to your spouse at that time. You can increase your spouse’s lifetime pension by electing the 80% or 100% options. 

It’s important to keep these things in mind while planning for retirement as everyone’s personal circumstances are different, and these can be deciding factors in choosing a spousal benefit option.

We are here to help you with this decision. Contact our Member Services team to discuss the spousal benefit option that’s right for your personal situation.

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.