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HOOPP
Members Life Changes Planning for Loved Ones If You Pass Away Before Retirement

If you pass away before retirement

Preparing for the unexpected can be difficult, but you can have peace of mind knowing that your HOOPP pension helps protect your loved ones, even in the event that you pass away before retirement.

Whether you have a qualifying spouse or beneficiaries, we're committed to providing you with the information you need so you can be better prepared for the future. Here is what you need to know.

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. They 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 their personal registered retirement savings plan (RRSP) or registered retirement income fund (RRIF) on a tax-sheltered basis.

Waiving survivor benefits

Your qualifying spouse has the right to waive their entitlement to survivor benefits. Waiving this entitlement means your spouse will not receive a monthly spousal pension if you pass away before them. Instead, HOOPP will pay any survivor benefits to your beneficiary or your estate when you pass away, as applicable.

To find out more about waiving of survivor benefits, please see the Waiver of Pre-Retirement Death Benefit form under Pension Forms & Resources.

Note:

Since everyone’s personal and financial circumstances are unique, you and your spouse may wish to seek out professional independent financial advice if you are considering waiving survivor benefits.

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. If you do not have designated beneficiaries on record, the benefit will be paid to your estate.

Updating your spouse and beneficiary information

Be sure to keep your spousal status and beneficiary information up to date. If you want to designate a spouse or beneficiary, please use HOOPP Connect or contact our Member Services team for assistance. Please be aware that beneficiary information cannot be updated over the phone.

Additional information

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.