Lifetime Pension Options

PEPP recognizes that every member is different. That’s why the Lifetime Pension gives you options to tailor your pension payments to reflect the needs of you and your loved ones.

This section walks you through key definitions and options that apply to you when buying a Lifetime Pension. This includes:

Definition of a spouse
Survivor Benefits
Beneficiaries
Single Life vs Joint Life Pension
Guarantee Period Options

Definition of a Spouse

Your spouse is:

the person to whom you are legally married. Or,
if you are not married, the person with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. They:
- have been living with you in a conjugal relationship for at least 12 continuous months;
- is the parent of your child by birth or adoption; or
- has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support.

A spousal relationship with someone to whom you are legally married ceases upon divorce.

A spousal relationship with someone to whom you are not married ceases upon a separation of at least 90 days due to a breakdown in your relationship. The individual resumes being your spouse if you resume living together in a conjugal relationship for a NEW period of at least 12 continuous months.

A married spouse takes priority over another person even if that person meets the definition of a spouse. You cannot have more than one spouse at any given time. Under the Plan rules, you are still legally married if you are separated but not divorced.

If you divorce, Plannera needs proof of divorce, such as a certified copy of the divorce certificate or Decree Absolute.

Survivor Benefits

The Lifetime Pension provides your spouse with a survivor benefit in the event of your death. PEPP calculates the amount based on a percentage of the monthly pension in effect at the date of your death. You can choose either 100% of your Lifetime Pension to continue to your surviving spouse or 60%. If you pass away before your spouse, PEPP will direct these monthly pension payments to your spouse for their lifetime.

Pension legislation requires that if you have a spouse at the time of retirement, you must choose the joint life option with a minimum survivor benefit of 60%, unless your spouse waives this right. Keep in mind that:

PEPP must be confident that your spouse is fully aware of the rights they are waiving.
Your spouse must complete the Spouse’s Consent and Waiver of Post-Retirement Survivor Benefits form.
This form must be signed outside the immediate presence of you, the member, and witnessed by a Notary Public or Commissioner for Oaths in and for Saskatchewan.
You can read the PEPP Talk on Waiver of Spousal Benefits or contact PEPP.

The spouse indicated on your application form when you purchase a Lifetime Pension is permanent and cannot be changed after, regardless of any changes to your marital status. If you enter a spousal relationship after buying a Lifetime Pension, you cannot convert the single life option to a joint life option.

Beneficiaries

When you buy a Lifetime Pension with a guarantee period you may choose a beneficiary(ies) to receive any remaining benefits if you, and your spouse, if applicable, pass away.

If you wish to name someone other than your spouse as your beneficiary, you must complete the Lifetime Pension Spouse’s Waiver of Designated Beneficiary Status form.

If you do not have a spouse when you buy a Lifetime Pension, you may buy a single life pension with or without a guarantee period. You may also choose one or more beneficiaries to receive any remaining guarantee benefits in the event of your death. Beneficiaries may be changed at any point up until your death.

If you do not choose a beneficiary(ies), any remaining benefits will be paid to your Estate.

Single Life vs Joint Life Pension

Single Life

This option provides you with dependable monthly payments for your lifetime.

You cannot choose this option if you have a spouse at retirement unless they sign the required written waiver.

In the event of your death:

Your monthly pension payment will end if you have a single life pension with a life-only guarantee period.
If you elected a guarantee period and die before that period ends, your monthly pension payment will continue to your beneficiary(ies) for the remaining guarantee period.

Joint Life Pension

This option provides you with dependable monthly payments for your lifetime.

If you pass away, PEPP will direct these monthly pension payments to your spouse, which will continue to receive annual adjustments and last for their lifetime.

If you have a spouse, pension legislation requires you to purchase the joint life option with at least a 60% survivor benefit unless your spouse signs a Spouse’s Consent and Waiver of Post-Retirement Survivor Benefits form.

When you purchase a joint life option, you have the option to leave your spouse a survivor benefit equal to:

100% of your monthly pension payment, or
60% of your monthly pension payment.

The greater the survivor benefit you choose, the lower your monthly payment will be.

You also must choose one of the four guarantee period options. In the event of your death:

With a life-only guarantee period, your spouse will receive a lifetime survivor benefit based on the joint life option in your contract (either 100% or 60%). Once your spouse dies, all payments will end.
With a 5, 10 or 15-year guarantee period:
- PEPP will provide payments to your surviving spouse at 100% of your monthly payment for the remainder of the guarantee period.
- After the guarantee period ends, your spouse will receive the lifetime survivor benefit for their lifetime (based on the survivor benefit you chose).
- If your spouse happens to die before the guarantee period ends, PEPP will direct payments to your beneficiary(ies) until all remaining guarantee payments are made.

Guarantee Period Options

Guarantee periods ensure that your monthly payments will continue for a specific amount of time, starting from the date you buy your Lifetime Pension. The option you choose for the guarantee period affects what your spouse, beneficiary, or estate will receive.

The guarantee period begins on the date you purchase your Lifetime Pension.

You have four guarantee period options to choose from:

Life-only
5-year
10-year
15-year

Below we explain how each of these four options impact the survivor benefit in both the Single Life option and the Joint Life option.

Life-only

A life-only guarantee period means you will receive a monthly pension payment for your lifetime.

In the event of your death:

Single Life Survivor Benefit

Monthly payments will end and no further benefits are paid.

Joint Life Survivor Benefit

Your surviving spouse will receive the survivor benefit you chose (100% or 60% of your Lifetime Pension) for their lifetime.
After your spouse dies, all payments end, and no further benefits are paid.

5-year Guarantee

The 5-year option guarantees at least 60 monthly payments (12 monthly payments for five years) from the date of purchase.

In the event of your death within this guarantee period:

Single Life Survivor Benefit

Payments will continue to your estate or beneficiary for the remainder of the guarantee period.

Joint Life Survivor Benefit

Payments to your surviving spouse continue at 100% of your monthly payment for the remainder of the guarantee period.
After the 5-year guarantee period, your spouse receives the lifetime survivor benefit payments regardless of how long they live (based on the survivor benefit you chose).
If your spouse happens to die during the guarantee period, payments will follow the Single Life survivor benefit.

10-year Guarantee

Guarantees at least 120 monthly payments (12 monthly payments for 10 years) from the date of purchase.

In the event of your death within this guarantee period:

Single Life Survivor Benefit

Payments will continue to your estate or beneficiary for the remainder of the guarantee period.

Joint Life Survivor Benefit

Payments to your surviving spouse continue at 100% of your monthly payment for the remainder of the guarantee period.
After the 10-year guarantee period, your spouse receives the lifetime survivor benefit payments regardless of how long they live (based on the survivor benefit you chose).
If your spouse happens to die during the guarantee period, payments will follow the Single Life survivor benefit.

15-year Guarantee

Guarantees at least 180 monthly payments (12 monthly payments for 15 years) from the date of purchase.

In the event of your death within the guarantee period:

Single Life Survivor Benefit

Payments will continue to your estate or beneficiary for the remainder of the guarantee period.

Joint Life Survivor Benefit

Payments to your surviving spouse continue at 100% of your monthly payment for the remainder of the guarantee period.
After the 15-year guarantee period, your spouse receives the lifetime survivor benefit payments regardless of how long they live (based on the survivor benefit you chose).If your spouse happens to die during the guarantee period, payments will follow the Single Life survivor benefit.
If your spouse happens to die during the guarantee period, payments will follow the Single Life survivor benefit.

If you die during the guarantee period and your named beneficiary is your estate, the estate can apply for a lump-sum payment equal to the present value of the remaining payments.

Whatever guarantee period you choose, keep in mind that the longer the guarantee period, the lower your monthly pension payment will be.