Shortened Life Expectancy

Revised: January 2022 Print this page Email the link

A member, former member or retired member who has a life expectancy of less than 24 months may apply to OPTrust to receive a lump sum commuted value payment of their pension or deferred pension.

Active Members

If an active member is approved to receive a lump sum payment of their commuted value due to shortened life expectancy (SLE), they may terminate their membership in the Plan to access the lump sum commuted value payment, without terminating their employment.

Retired Members

Pensioners who are already in receipt of a pension and have a life expectancy of less than 24 months may also make an application to OPTrust for a lump sum commuted value of the pension in lieu of continued pension payments for their remaining lifetime and the lifetime of their spouse.

If the pensioner is receiving post-retirement insured benefits and the lump sum payment is approved, the insured benefits, including family coverage (if applicable) will continue until the pensioner’s date of death only.

 Important! The amount of survivor pension that the spouse would give up could be considerable. It is important that the spouse understands what they are giving up.

Interest of a former spouse “protected”

A former spouse who is entitled to a portion of the member, former member or retired member’s entitlement as a result of a marriage breakdown has their rights protected since the pension entitlement belonging to the former spouse cannot be included in the lump sum commuted value payment.

 Important! Any benefits the member is receiving under the Long Term Income Protection (LTIP) plan may be reduced by the amount of the lump-sum pension payment.