Spousal survivor benefits

WHO QUALIFIES AS AN ELIGIBLE SPOUSE?

A spouse is defined as someone of the same or opposite sex with whom you:

• are married

OR

• have been living together in a conjugal, common-law relationship
1. continuously for at least three years, or
2. in a relationship of some permanence and are the natural or adoptive parents of a child.

If you die before your pension begins, to be eligible, your spouse must:

• satisfy the definition of spouse

AND

• must not be living separate and apart from you at the time of termination from the Plan and at the time of your death.

If you die after your pension begins, to be eligible, your spouse must:

• satisfy the definition of spouse

AND

• must not be living separate and apart from you at the time of termination from the Plan and at the time your pension began.

PRE-RETIREMENT DEATH

If you die before your pension begins and have an eligible spouse, your spouse automatically receives almost all survivor benefits. This rule applies, without exception, to pension credit accumulated up to December 31, 1986. Credit after December 31, 1986 is also payable to your spouse first. However, for this period of credit, your spouse has the option of giving up his or her rights to survivor benefits. Your eligible spouse is also not entitled to receive excess contributions unless he or she is checked off as an 'other benefit recipient' on the Identifying Benefit Recipients form. For more information on excess payment, click here.

WAIVING THE SPOUSAL SURVIVOR BENEFIT

There may be circumstances where your spouse may want to waive his or her spousal survivor benefit for your credit after December 31, 1986. If your spouse wants to waive this survivor pension, that decision must be made before the date of death. This option exists only for credit after December 31, 1986. To waive this benefit your spouse must sign the Spousal Waiver Pre-Retirement Death Benefit form (OPTRUST 1023) and submit it to OPTrust before the date of death. He or she can cancel the waiver at any time, up to the date of death. After death the waiver cannot be changed.

If your spouse has waived his or her rights to a survivor pension and you die before your pension begins, any survivor benefits for your service after December 31, 1986 would be paid to your designated beneficiaries. If you do not have any survivors named, any survivor benefits are paid to your estate.

IF YOU HAVE A NEW SPOUSE BEFORE YOUR PENSION BEGINS

If you do not have a spouse when you terminate from the Plan, but you have a spouse when your pension begins, (i.e. during the deferred period), or if you have a different spouse when your pension begins, your current spouse at retirement is legally entitled to a 60% survivor pension. However, you and your spouse can waive the survivor pension. Because you did not have this spouse when you terminated from the Plan (see eligible spouse definition), in order to provide the survivor benefit, your pension will be actuarially reduced to pay the full cost of the 60% survivor pension.

INCREASING THE SPOUSAL SURVIVOR PENSION

In the Plan, your eligible spouse automatically receives a 60% survivor pension when you die, at no additional cost to you. However, you also have the option of providing a higher survivor pension for your spouse in increments of 5% (i.e. 65%, 70%, 75%). To provide this increased survivor benefit your pension will be actuarially reduced. You must inform OPTrust before you retire if you want to increase your spouse's survivor pension. You must apply using the Application for Increased Survivor Pension form (OPTrust 1006). If you apply at least two years before the month your pension begins, no medical information is necessary. If you apply after this time but before the month when your pension begins, we require a Certificate of Health form (OPTrust 1011) and OPTrust must approve your application confirming you are in good health for your age. Both the Application for Increased Survivor Benefits and the Certificate of Health are available from your human resources representative or from OPTrust.

You may cancel the higher survivor benefit at any time, up to one month before your pension starts. Once your pension is effective, you no longer have the option to cancel the increased survivor pension. This means that if your spouse dies before you do, you continue to receive a reduced pension. Pensions are effective on the first of the month.