INTRODUCTION

Retirement. It’s just around the corner—and as you approach this new stage in life, you’re probably excited about the new opportunities that await you. Will you travel, take up new hobbies or begin a new career? Perhaps you’re also a little apprehensive about what this new phase will look like. You need to be sure you can finance this next step. In particular, you need to be sure your money will last until the end of your life and, if necessary, beyond.

This document is best read in conjunction with your Member’s Benefit Statement or a pension estimate. You can request a pension estimate from the Pension Plan, or you can do your own estimate on the Plan’s website with the Personalized Pension Estimator. This information is available at mpp.pensionsbc.ca.

You get your basic guaranteed pension for your life regardless of any other decisions you make about it. Pension options are meant to protect others—your spouse or other loved ones.

Which pension option you choose is one of the most important decisions you’ll have to make. This decision will affect your lifestyle for the rest of your life. While you will receive your pension until you die, the option you choose will make a difference in the amount paid to you each month, and it will make a difference in the amount paid to your spouse, beneficiary or estate after your death.

We have written this document to help you work through the options available to you. You should also speak to a financial advisor before making your decision, because once your pension benefit payment has been finalized, you have only 60 days in which to notify the Pension Plan, in writing, if you want to change your option. After that period, your choice is irrevocable.

DID YOU KNOW: Can I change the pension option I originally selected? You have 60 days from when your pension is granted to change your pension option. After that time your selection is final. If you have a spouse, your ability to change your pension option may be limited. This is because your spouse has, under provincial pension legislation, certain entitlements to your pension. Your spouse can waive all or a portion of these entitlements before your pension starts. Once the pension starts, your spouse’s legal entitlement is fixed and cannot be waived or reduced. If your spouse dies within 60 days of your pension being granted, you can change to any pension option because there is no longer a need to protect your spouse’s entitlement to your pension. If your spouse dies after the 60 days, you cannot change your pension option.