Current & Historical Pension Options

Transcription

1 Current & Historical Pension Options This information sheet lists and describes both current and historical pension options for the Management Employees Pension Plan (MEPP). Where an option s name has changed but the option remains the same, you will find the earlier name in parentheses after the current name. Current Options Options with a survivor benefit Members who have a pension partner at the time of their retirement must select one of the options which provides for a benefit paid to a survivor unless the pension partner signs a waiver. Joint Lifetime with Reduced Survivor Benefit (Normal pension) A Joint Lifetime with Reduced Survivor Benefit pension will be paid to you for your lifetime. If you die before your pension partner, pension benefits are paid to your pension partner as long as he or she lives. For service before 1992, the pension partner benefit is 75% of your pension. For service after 1991, the pension partner benefit is 66 2/3% of your pension. Joint Lifetime with Reduced Survivor Benefit Guaranteed At Least 10 Years (Normal pension Guaranteed 10 year term) A Joint Lifetime with Reduced Survivor Benefit Guaranteed At Least 10 Years pension will be paid to you for your lifetime. If you die before your pension partner, pension benefits are paid to your pension partner as long as he or she lives. If you die before the end of the 10 year guaranteed term, monthly payments will continue to your pension partner. At the end of the term, the monthly payments paid to your pension partner will be reduced. If you die after the end of the 10 year term, the monthly payments paid to your pension partner will be immediately reduced. For service before 1992, the pension partner benefit is 75% of your pension. For service after 1991, the pension partner benefit is 66 2/3% of your pension. If both you and your pension partner die within 10 years from the date your pension begins, a Joint Lifetime Guaranteed At Least 10 Years (Joint Life not reduced with a guaranteed 10 year term) A Joint Lifetime Guaranteed At Least 10 Years pension is payable for the lives of you and your pension partner. On the death of either you or your pension partner, the same monthly pension is paid to the survivor for his or her life. The same monthly payment is paid as long as either you or your pension partner is alive. Page 1 of ME/March 2016

2 If both you and your pension partner die within 10 years from the date your pension begins, a Joint Lifetime Reduced by 1/3 Guaranteed At Least 10 Years (Joint Life reduced by 1/3 with guaranteed 10-year term) A Joint Lifetime Reduced by 1/3 Guaranteed At Least 10 Years pension is payable for the lives of you and your pension partner. At the first death of either you or your pension partner, the monthly payment is reduced by 1/3. However, it is not reduced by 1/3 until the end of the guarantee period if the first death occurs during the guarantee period. This reduced pension will continue to be paid to the survivor for his or her life. This means that if your pension partner dies before you, your pension will be reduced to 2/3 of the pension amount. If both you and your pension partner die within 10 years from the date your pension begins, a This option is not shown in the Retirement Benefit Statement. In order to receive this option, you must request it. Single Lifetime Guaranteed Term options A Single Lifetime Guaranteed Term pension is paid to you for as long as you live. If you die before the end of the guaranteed period, payments will continue to your designated beneficiary(ies) for amount of time remaining in the guaranteed period. Below is a list of the Single Lifetime Guaranteed Term options: Single Lifetime Guaranteed At Least 5 Years (Guaranteed 5-Year Term) Single Lifetime Guaranteed At Least 10 Years (Guaranteed 10-Year Term) Single Lifetime Guaranteed At Least 15 Years (Guaranteed 15-Year Term) Coordination Coordination is a feature of MEPP which allows you to receive a temporary increase prior to age 65. After age 65, the increase is removed and a reduction to your pension begins. What happens if you die with a coordinated pension? If the pension commenced after December 31, 2003 or if you chose the Joint Lifetime with Reduced Survivor Benefit (Normal pension): 1. Coordination will continue as long as you are alive. 2. If you have a coordinated pension and you die before age 65, the increase in the monthly payment will stop. This is because survivor benefits are determined using the original pension choice without coordination (the non-coordinated pension). The amount paid to your pension partner or beneficiary, if any, reverts to your original pension choice without coordination. The pension will not be reduced on the date you would have reached age 65. Page 2 of ME/March 2016

3 3. If you die after age 65, the reduction in the monthly payment will stop and your pension partner or beneficiary will receive the original monthly MEPP survivor pension. If the pension commenced before January 1, 2004 and you chose one of the Single Lifetime Guaranteed Term options: 1. Coordination continues as long as the benefit continues to be paid. 2. If you have a coordinated pension and you die before age 65, the increase in the monthly payment will not stop. This is because survivor benefits are determined using the pension in pay. 3. If you die after age 65, the reduction in the monthly payment will not stop. Historical Options MEPP has five historical joint lifetime pension options and one historical single lifetime guaranteed term pension option. Joint Lifetime with Reduced Survivor Benefit Guaranteed At Least 5 Years (Normal pension Guaranteed 5 year term) A Joint Lifetime with Reduced Survivor Benefit Guaranteed At Least 5 Years will be paid to you for your lifetime. If you die before your pension partner, pension benefits are paid to your pension partner as long as he or she lives. If you die before the end of the 5 year guaranteed term, monthly payments will continue to your pension partner. At the end of the term, the monthly payments paid to your pension partner will be reduced. If you die after the end of the 5 year term, the monthly payments paid to your pension partner will be immediately reduced. benefit is paid to your designated beneficiary(ies) for the rest of the 5 year period. Joint Lifetime (Joint Life not reduced no guarantee) A Joint Lifetime pension is payable for the lives of you and your pension partner. On the death of either you or your pension partner, the pension is paid to the survivor for his or her life. The same monthly payment is paid as long as either you or your pension partner is alive. There is no guarantee for this pension option. If both you and your pension partner die, no further payments are made. Joint Lifetime Guaranteed At Least 5 Years (Joint Life not reduced with guaranteed 5-year term) A Joint Lifetime Guaranteed At Least 5 Years pension is payable for the lives of you and your pension partner. On the death of either you or your pension partner, the pension is paid to the survivor for his or her life. Page 3 of ME/March 2016

4 The same monthly payment is paid as long as either you or your pension partner is alive. benefit is paid to your designated beneficiary(ies) for the rest of the 5 year period. Joint Lifetime Reduced by 1/3 Guaranteed At Least 5 Years (Joint Life reduced by 1/3 with guaranteed 5-year term) A Joint Lifetime Reduced by 1/3 Guaranteed At Least 5 Years pension is payable for the lives of you and your pension partner. At the first death of either you or your pension partner, the monthly payment is reduced by 1/3. This reduced pension will continue to be paid to the survivor for his or her life. This means that if your pension partner dies before you, your pension will be reduced to 2/3 of the pension amount. benefit is paid to your designated beneficiary(ies) for the rest of the 5-year period. Joint Lifetime Reduced by 1/2 (Joint Life reduced by 1/2 no guarantee) A Joint Lifetime Reduced by 1/2 pension is payable for the lives of you and your pension partner. At the first death of either you or your pension partner, the monthly payment is reduced by 1/2. This reduced pension will continue to be paid to the survivor for his or her life. This means that if your pension partner dies before you, your pension will be reduced to 1/2 of the pension amount. There is no guarantee for this pension option. If both you and your pension partner die, no further payments are made. Single Lifetime (Single Life no guarantee) A Single Lifetime pension (with no guaranteed term) is payable for your lifetime. No payments are paid to a beneficiary(ies) after your death. This document provides general information only. Should anything in this document conflict with governing legislation, the latter shall apply. Alberta Pensions Services Corporation (APS) proudly serves MEPP and provides responsive and focused member service on behalf of the Plan. If you need more information, please contact APS through the Member Services Centre. Mail: MEPP c/o APS 5103 Windermere Blvd. SW Edmonton, Alberta T6W 0S9 Telephone: MEPP (6377) memberservices@mepp.ca Website: Page 4 of ME/March 2016

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