Designating a Beneficiary
	Why Designate? I Who to Name I How to Designate I Miscellaneous
	Every active member of the Ontario Teachers’ Pension Plan should consider designating a beneficiary. This will help ensure your benefits are paid as you wish should you die before you start your pension. Your beneficiary can be one or more people or a corporation, such as a charity. Why designate? What are the advantages to naming a beneficiary? Your heirs could save time and money. Funds are paid directly to the beneficiary, without the delays or probate fees associated with the processing of an estate. Estate taxes are also avoided, although your heirs will pay tax on your death benefit. What if I don’t designate a beneficiary? If you do not have an eligible spouse, dependent children or a designated beneficiary when you die, any benefits will be payable to your estate. Even if you want benefits to go to your estate, it’s still wise to consciously make that choice by naming your estate as your designated beneficiary. TOP Who to name Should I name my spouse as beneficiary? It is not necessary to name your spouse as your designated beneficiary because an eligible spouse will receive your survivor benefits. This automatic right to your pension is enshrined in provincial pension law. The only exception to this rule applies when a valid separation agreement or court order assigns part of your benefit to a former spouse. By designating a beneficiary, you decide who should get your pension death benefits in case your spouse dies before you do. Should I name my children as beneficiaries? If you want your children to receive the biggest death benefit possible, you must name them as your designated beneficiaries. Although dependent children automatically receive a survivor pension for as long as they qualify for it, there is often a benefit, in addition to their pension, to pay out. This benefit can be substantial if your dependent children are older. Children who aren’t dependent on you will not receive any benefits unless they are named as your designated beneficiary. How do you define an eligible spouse? To be eligible for pre-retirement survivor benefits, your married or common-law spouse must be living with you at the time of your death. A common-law spouse is only eligible if you have lived together in a conjugal relationship for at least three continuous years or less if you are the natural or adoptive parents of a child. How do you define dependent children? If you do not have an eligible spouse when you die, your children will receive a survivor pension if they are dependent on you for support at the time of your death and are: • under age 18; • 18 to 24 years and enrolled in full-time continuous education; or • disabled.
	If you have more than one dependent child, the survivor pension will be divided evenly and the divided amount is payable to each child for as long as he or she qualifies for it. Can I name a minor child? You can name a minor as your designated beneficiary. A child aged 18 or older receives survivor benefits directly, while payments for a minor child are provided to the court-appointed guardian of the child’s property. If there is no guardian, benefits are paid into court until the child reaches age 18. TOP How do I name or change a beneficiary? You can name or change your beneficiary online at iAccess Web, the secure members-only section of this website. If you choose to name multiple beneficiaries, any pre-retirement death benefit payable, for service that accrued after 1986, will be divided equally among your beneficiaries. In the absence of a designated beneficiary, any death benefit payable, after survivors have been taken into account, will go to your estate. TOP Miscellaneous What do designated beneficiaries get? If there is no eligible spouse at the time of your death, a designated beneficiary receives a lump-sum payment equal to the commuted value of the pension you accumulated after 1986, minus the value of any child’s pension that may be payable. Any death benefits payable for service before 1987 are paid to your estate, not your beneficiary. What happens if I die after I collect my pension? A designated beneficiary exists only for pre-retirement death benefits. Post-retirement benefits are paid to your eligible spouse or, if you don’t have one, to your dependent children and/or estate.

	Posted June 2008	TOP