What death benefits
are available for your
survivors after retirement?

Planning your survivor's pension

Your spouse's survivor pension is based on your pension at age 65. This means a pension that has been integrated for CPP. However, if you are receiving an OPTrust pension and die before age 65, your spouse or eligible child receives a survivor pension based on 60% of what you were receiving. The survivor pension is re-calculated to 60% of your CPP-integrated pension on what would have been your 65th birthday. If you die after age 65, your pension has already been integrated, so your spouse will receive benefits based on 60% of the amount of pension you were receiving when you died.

The example above shows that the surviving spouse receives 60% of the pension the member was receiving when he or she died. On what would have been the member's 65th birthday, the survivor pension is reduced to 60% of the former member's CPP-integrated pension.

Example "A" shows a 75% survivor pension with the actuarial reduction that is made to the member's pension for the higher survivor pension. The resulting survivor pension is $962 per month.

If the member in these examples had no surviving spouse but did have an eligible child, for example a 22-year old university student, that child would typically receive 60% of the member's pension. This would continue until the student stopped full-time attendance at school or reached the limit of five years in a post-secondary institution.

Increasing the spousal survivor pension

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 benefit, your pension will be reduced. You must inform OPTrust before you retire if you want to increase your spouse's survivor pension. If you apply at least two years before 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 and OPTrust must approve your application. 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.

Remarriage of surviving spouse

If your surviving spouse remarries after your death, your surviving spouse will continue to receive survivor benefits from OPTrust. However, if your surviving spouse remarries, that new spouse is not eligible for insured benefits or survivor benefits. If surviving spouse dies, any further benefits go to any of your eligible children. If there are no eligible children, any residual payment is payable to any payment recipient you have designated or your estate, not to your spouse's estate.

If your spouse dies before you

In cases where your spouse dies before you, there is no change in the pension you are receiving. Please notify OPTrust if this happens so we can adjust our records accordingly. As noted above if you chose an increased survivor pension, you will continue to receive a reduced pension despite the fact that your spouse died before you.

If you have a new spouse before your pension begins

If you did not have a spouse when you terminated 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 unless it is waived by you and your spouse. Because you did not have this spouse at the time of termination, in order to provide the survivor benefit, your pension will be reduced actuarially to pay the full cost of the 60% survivor pension. If you both waive this benefit, your spouse will not receive survivor benefits. Please note that if your spouse has waived the survivor pension and you die before your spouse, he or she will no longer be covered for insured benefits. In these circumstances, we urge both you and your spouse to get independent legal advice before deciding to waive the survivor benefits.

IF YOU HAVE A NEW SPOUSE AFTER RETIREMENT

When a pensioner marries or starts a common-law relationship after retirement (after your pension starts) the new spouse is not set up for survivor benefits. Under the OPSEU Pension Plan, for a spouse to be eligible to receive survivor benefits, the person must have been your spouse when you terminated from the Plan and when your pension began. However, if you do marry after retirement or acquire a common-law spouse you may request that a survivor pension be established for your new spouse. To fund the survivor benefit, your pension is actuarially reduced. If your spouse dies before you, the actuarial adjustment to your pension will continue.

To set up a new spouse for survivor benefits, send us a request for information, a copy of the marriage certificate and your spouse's birth certificate. If your spousal relationship is common-law, call OPTrust and we will send you a package outlining the information we need.

To set up a survivor pension for a new spouse the following conditions must be met:

• If you already have an eligible spouse who is entitled to a survivor pension, you cannot set up a survivor pension for a post-retirement spouse
• Your application to set up a survivor pension must be delivered to OPTrust within 90 days of whichever occurs first, either:
  • the date of your marriage, or
  • the date on which your common-law criteria are satisfied.
• If there is an eligible child from your former spousal relationship, the child will receive a survivor pension until the child is no longer meets the definition of "eligible." To set up your new spouse, you must deliver the application to OPTrust within 90 days from the date that the child is no longer eligibile to receive a survivor pension.
• If your application is delivered after the time limits noted in the points above, you must prove you are in good health.

When we receive your spousal documentation, we will send you an election form showing the cost for providing a 50%, 55%, 60%, 65%, 70% or 75% survivor pension.

Your new spouse may be eligible for coverage under your insured benefits (if you are receiving them) and if you do not have a former spouse who is covered by your insured benefits. To start the coverage, please send a written request to OPTrust.

IF YOUR SPOUSAL RELATIONSHIP ENDS

If your spousal relationship ends, your spouse may become entitled to a portion of your pension accrued during your spousal relationship as part of the equalization process under the Family Law Act. If you enter into a domestic contract or are a party to a court order requiring a split of your pension you must file a certified copy with OPTrust. This document must clearly identify how the pension is to be split.

Pension law will not permit the payment of more than 50% of your pension earned during the marriage to be paid to your former spouse for the equalization of family property. If you had an eligible spouse at the time you first began to receive your pension, your ex-spouse is entitled to receive a full survivor pension after your death (unless he or she waived it at that time). The end of the spousal relationship after retirement does not affect the ex-spouse's eligibility for a survivor pension under the Plan.

After retirement
If your spousal relationship ends after you retire and start receiving your pension payments, your former eligible spouse will be able to receive the pension benefit payments from the date stated in the order or contract as long as the date is in the future. Pension payments to a former spouse cannot be backdated.

IF YOU HAVE NO ELIGIBLE SURVIVORS WHEN YOU DIE

When a pensioner does not have any eligible survivors, that is, there is no eligible spouse, children or payment recipient, any residual balance payable from the Plan will be paid to the estate of the pensioner.