The normal form of pension under the Plan is the single life monthly pension with a five year guarantee period.
If you have a spouse/common-law partner at retirement, legislation requires that you select a joint and survivor form of pension, unless the spouse/common-law partner waives his or her entitlement to the pension benefit.
The following pension options are available to you at retirement:
Single Life Guaranteed 5, 10, or 15 Years
This option provides a monthly pension for your lifetime and guarantees the full amount of the pension to the end of the 5, 10 or 15-year guarantee period selected. If you die before the guarantee period ends, and your beneficiary is a spouse/common-law partner, they continue to receive the monthly pension for the remainder of the guarantee period. If you die before the guarantee period ends and your beneficiary is not a spouse/common-law partner, they will receive the remaining monthly pension payments as a lump-sum value.
100% Joint and Survivor 5, 10, or 15 Years
This option provides a pension for you and your spouse/common-law partner’s lifetime. If both you and your spouse/common-law partner die before the guarantee period ends, the estate of the last survivor will receive the lump-sum value of the remaining monthly pension payments.
66.67% Joint and Survivor 5, 10, or 15 Years
This option provides you with a slightly larger monthly benefit in comparison to the 100% joint and survivor benefit for your lifetime. If you die, your spouse/common-law partner will receive 100% of the monthly pension up to the end of the guarantee period, at which time the monthly pension amount would reduce to 66.67% for their lifetime. If both you and your spouse/common-law partner die before the guarantee period ends, the estate of the last survivor will receive the lump-sum value of the remaining monthly pension payments.
Level Income Option
The level income option provides members who retire before age 65 with a way to balance their retirement income from the Pension Plan and Old Age Security (OAS).
OAS is a federal government benefit that a member may be eligible for at age 65.
For a member who retires before age 65 and chooses the level income option, the Plan provides an advance of a portion of the current OAS amount in addition to the member’s monthly pension.
Note: The current OAS amount is the amount available to eligible individuals who are currently age 65.
When the member reaches age 65, the portion of the OAS amount is no longer provided, and the member’s monthly pension is reduced to recover the amount advanced. The member applies for the OAS benefit directly from the federal government and if the member is eligible for the benefit, the amount the member receives from OAS should offset the reduction to the HEB Manitoba monthly pension. The reduction is applied to the member’s pension for their lifetime, as well as to the survivor benefit, if applicable.
Choosing the level income option does not affect the OAS benefit that members may be eligible to receive from the federal government.
As with selecting the pension option, members should carefully consider their personal situation when deciding whether or not to select the level income option.