What are my options on retirement?
You are eligible to receive a pension when you reach the
normal retirement date specified by your pension plan.
However, you may retire any time you are within 10 years of
the normal retirement date. For example, if your plan has a normal retirement date of 65
years of age, you have the right to retire and begin to receive a pension at any time
after reaching age 55.
By selecting an early retirement option you may reduce the
amount of pension you will receive.
If you have transferred money from your plan to a LIRA,
then your pension can commence at the earliest of:
- age 55; or
- an early retirement age provided by the plan where the money
originated
A pension is a life annuity. If you have a spouse, pension
legislation requires that your pension be offered in a "joint and survivor"
form. This provides your surviving spouse with a lifetime pension of at least 60% of the
pension that was being paid to you. The amount of the pension payable to you at retirement
may be reduced to ensure that continuing payments can be made throughout your lifetime and
your spouse's lifetime.
You may receive a pension that does not offer this survivor
benefit if your spouse signs the waiver prescribed by The Pension Benefits Act,
1992, (Form 3 - Spouse's Waiver of 60%
Post-Retirement Survivor Benefit) prior to the commencement of your
pension. Therefore, your spouse must sign a waiver prior to the purchase of a single life
annuity or an annuity with a survivor benefit of less than 60%.
As an alternative, you may also transfer your pension money
to a registered retirement income fund (RRIF) that meets the requirements of Section 29.1
of The Pension Benefits Regulations, 1993. Your spouse must sign the
consent form (Form 1 - Spouse's Consent to Transfer to a
Registered Retirement Income Fund Contract) prescribed by the Regulations
before you can make the transfer.
You must designate your spouse as beneficiary of a RRIF.
Your spouse may waive his or her status as beneficiary by signing the waiver
form (Form 2 - Spouse's Waiver of Designated Beneficiary Status)
prescribed by The Pension Benefits Regulations, 1993.
If you are a member or former
member of a defined contribution plan that offers a Variable
Benefit from the plan, at retirement you may also establish a
Variable Benefit Account. A Variable Benefit is similar in
nature to the RRIF. Your spouse must sign a consent form (Form
2.01 - Spouse's Consent to Transfer to a Variable Benefit Account)
prescribed by the Regulations before you can establish a
Variable Benefit Account. In addition, your spouse must
waive entitlement to the 60% survivor benefit provided by the Act
by signing a waiver form (Form 3 -
Spouse's Waiver of 60% Post-Retirement Survivor Benefit).
You must designate your spouse as
beneficiary of your Variable Benefit Account. Your spouse
may waive his or her status as beneficiary by signing the wavier
form (Form 2.02 - Spouse's
Waiver of Designated Beneficiary Status Under a Variable Benefit
Account).
Please refer to our bulletin Retirement Options for further details
concerning your options at retirement.
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