What are “forms” of pension?

Pensions come in different shapes and sizes called “forms.” This means you can tailor your pension to meet your particular needs.

Choosing the form of your pension is one of the most important decisions you make when retiring. Your decision is irrevocable once your pension payments have begun. That is, once you elect an option and retire from employment, the Plan does not allow a change in the form of your pension. You may wish to speak with a financial planner or other retirement professional who can help you decide which form of pension is best for you.

At retirement, SHEPP will provide you with a retirement package that shows the amount of pension payable to you in the forms of pension available under the Plan. The options available to you will depend on whether you have a spouse or not.

Single Life

If you do not have a spouse at retirement, or your spouse has waived their right to your pension by signing the prescribed form, you will be required to choose a Single Life form of pension, of which there are three options:

• Single Life pension guaranteed for 5 years;
• Single Life pension guaranteed for 10 years; or
• Single Life pension guaranteed for 15 years.

Under all three options, the pension is paid for your life, and if you die before the end of the guaranteed term, the pension continues to your beneficiary or estate until the guarantee expires.

Joint Life

If you have a spouse on the date of retirement, unless your spouse waives their entitlement, you are required to elect a form of pension where no less than 60% of your pension is payable to your spouse for their life following your death. There are 12 Joint Life options:

• Joint Life 60% survivor pension guaranteed for 0, 5, 10, 15 years;
• Joint Life 75% survivor pension guaranteed for 0, 5, 10, 15 years;
• Joint Life 100% survivor pension guaranteed for 0, 5, 10, 15 years.

Under all Joint Life options, your pension is paid for life. On your death, the percentage you select continues to your surviving spouse for life. To this, you can add a guaranteed term of 5, 10, or 15 years. If you die before the end of the term, your full pension continues to your surviving spouse until the end of the term, then the pension reduces to the survivor percentage you selected at retirement.

If you and your spouse both die before the end of the guaranteed term, pension payments remain payable until the end of the term. Settlement of the balance of the guaranteed pension payments is determined based upon whether you or your spouse dies last.

You must elect a form of pension by completing and returning the forms in your retirement package to SHEPP four to six weeks before your retirement date. Only your spouse on the date of your retirement is entitled to a Joint Life survivor pension. Your spouse may waive their entitlement by signing and submitting to SHEPP the Spouse’s Waiver of 60% Post-Retirement Survivor Benefit form within 90 days before your retirement.

It is important to keep in mind that, in general, the longer the guarantee period, or the larger the survivor benefit you choose, the smaller your monthly pension payments will be. However, all forms of pension are calculated to be equal in value to the Single Life pension guaranteed for 5 years option.

To assist in your retirement planning, SHEPP offers a pension estimate calculator through SHEPPweb. However, keep in mind that these are estimates only and actual pension amounts may vary.

How does SHEPP define a spouse?

Refer to the Marriage page.

If my spouse passes away and I remarry in retirement, will my new spouse receive the benefit when I die?

Only your spouse on date of retirement is entitled to Joint Life survivor benefits.

What if I want any benefit payable to go to my children when I die?

You may designate your children as beneficiaries. However, they would only receive a post-retirement survivor benefit if:

• you are not survived by a spouse or your spouse has waived their entitlement; and
• you elected a form of pension that included a guaranteed term and it has not yet expired.

When and how do I choose which form of pension I want?

You must elect a form of pension by completing and returning the form to SHEPP by the specified date.

At retirement, SHEPP will provide you with a retirement package that shows the amount of pension payable to you in the normal and optional forms of pension available under the Plan. In addition, SHEPP will provide the Spouse’s Waiver of 60% Post-Retirement Survivor Benefit form and the Retirement Brochure.

Member without a spouse (or member whose spouse has signed a waiver)

Single Life pension guaranteed for 5 years:	Single Life pension guaranteed for 10 years:	Single Life pension guaranteed for 15 years:
paid for your life; guaranteed for 5 years.	paid for your life; guaranteed for 10 years.	paid for your life; guaranteed for 15 years.

Member with a spouse

Joint Life 60% guaranteed 0, 5, 10 or 15 years:	Joint Life 75% guaranteed 0, 5, 10 or 15 years:	Joint Life 100% guaranteed 0, 5, 10 or 15 years:
paid for your life; on your death, 60% continues for your surviving spouse’s lifetime; if you die before the end of the guaranteed term you select, the pension continues to your surviving spouse until the end of the term; then it reduces to 60% for your surviving spouse’s lifetime.	paid for your life; on your death, 75% continues for your surviving spouse’s lifetime; if you die before the end of the guaranteed term you select, the pension continues to your surviving spouse until the end of the term; then it reduces to 75% for your surviving spouse’s lifetime.	paid for your life; on your death, 100% continues for your surviving spouse’s lifetime.
If your spouse predeceases you, and you die before the end of the guaranteed term you select, your pension continues to your beneficiary until the guarantee expires.
If having survived you, your spouse dies before the end of the guaranteed term, the balance remaining on the guaranteed term of pension payments will be commuted and paid to your spouse’s estate.