Pension Options

When you retire, you must select a form of pension (Single Life or Joint and Survivor) and a guarantee period of five, ten, or 15 years.

Regardless of the guarantee period you choose, your pension is paid for your lifetime – and the lifetime of your spouse or common-law partner if you choose a Joint and Survivor option.

All the options on your Pension Estimate have an equal value, but the monthly payment amount for each option differs because it is actuarially adjusted to reflect the cost of variables such as a longer guarantee period or a different percentage of survivor benefit.. The base form of pension under the Plan is the Single Life monthly pension with a five-year guarantee period.

Some benefits are payable to the member only and will stop when the member dies.

It is important that you choose the options that are most appropriate for your personal circumstances.

Single Life Form of Pension

If you are single when you retire, you may only choose a Single Life form of pension.

If you are married or in a common-law relationship, you may only choose a Single Life form of pension if your spouse or common-law partner gives up their entitlement to the pension benefit.

The Single Life option provides a monthly pension for your lifetime. If you die before the end of the guarantee period, your beneficiary receives the value of your remaining guaranteed pension payments as a lump sum payment.

If you outlive the guarantee period, your beneficiary does not receive any pension benefit on your death.

Joint and Survivor Forms of Pension

If you have a spouse/common-law partner at retirement, legislation requires that you select a Joint and Survivor form of pension unless your spouse/common-law partner gives up their entitlement to the pension benefit. You may choose an option that provides your surviving spouse or common-law partner with either 66 2/3 % or 100% of your monthly pension after your death.

66⅔% Joint and Survivor

The 66⅔% Joint and Survivor option provides a monthly pension for your lifetime and for the lifetime of your spouse or common-law partner.

If you die before the guarantee period ends, your surviving spouse or common-law partner will receive 100% of your monthly pension to the end of the guarantee period. After the guarantee period ends, their monthly amount will reduce to 66 2/3% of your monthly pension, and they will receive this amount for their lifetime.

If you die after the guarantee period ends, your surviving spouse or common-law partner’s monthly pension will immediately reduce to 66 2/3% of your monthly pension, and they will receive that amount for their lifetime.

100% Joint and Survivor

The 100% Joint and Survivor option provides a monthly pension for your lifetime and for the lifetime of your surviving spouse or common-law partner.

After your death, your spouse or common-law partner will continue to receive 100% of your monthly pension benefit for their lifetime, regardless of whether you outlive the guarantee period.

For all Joint and Survivor Options

If both you and your spouse or common-law partner die before the guarantee period ends, the estate of the last survivor will receive the lump sum value of the remaining guaranteed monthly pension payments.

If you and your spouse or common-law partner die after the guarantee period ends, all pension payments stop upon the death of the last survivor.

How the Guarantee Period Works

If you die before the end of the five, ten, or 15-year guarantee period you have chosen, your beneficiary will receive 100% of your remaining guaranteed pension payments.

Integration with OAS

If you retire before age 65 and are eligible, you may have the option to take an advance on your HEB Manitoba pension that is paid until age 65. This advance provides you with a way to level your retirement income between the Pension Plan and Old Age Security (OAS). (OAS is a federal government benefit you may be entitled to at age 65.)

If you are eligible for this option, it will be included in your Pension Application package.

For more information, see the Guide to Applying for Your Pension.