The default amount of a spousal survivor pension is 60% of your lifetime retirement pension. However, you may choose a higher or lower amount. You can increase your survivor pension to 65%, 70%, or 75%. The higher the percentage you choose, the greater the reduction to your pension. You can also decrease your survivor pension to 50% or 55%. There's no cost for providing a 50% survivor pension to your eligible spouse.
You can change your option, but once we make your first pension payment it becomes irrevocable, even if your spouse dies before you or if you later separate or divorce.
If you have an eligible spouse when we make your first pension payment, they’ll continue to be entitled to a survivor pension even if you separate or divorce. Contact us to learn about providing a new spouse with a survivor pension.
Find the right option for your situation
When thinking about your options, ask yourself:
- Do you expect to outlive your eligible spouse?
- Is your spouse financially dependent on you?
- Are you okay with a larger permanent reduction to your pension in exchange for the long-term financial security of your spouse?
- Will your spouse have other sources of retirement income after you die?
Approximately 40% of recent retirees with an eligible spouse chose to lower the survivor pension to below the default of 60%. About 15% opted for a survivor pension option higher than the default. When considering your options, we recommend consulting a financial advisor to help you decide.
Opting for a lower survivor pension
If you choose to lower your survivor pension to 50% or 55%, we'll need a waiver signed by you and your spouse before we make your first pension payment.
If you feel this is the right option for you and your eligible spouse, you both must sign a Spousal Waiver of Joint and Survivor Pension form and return it to us within 12 months of your first pension payment. A waiver can be revoked if you notify us in writing. However, once we make your first pension payment, your survivor option election becomes irrevocable.
Opting for a higher survivor pension
Your pension will be reduced to provide for a survivor pension higher than 50%. Once we make your first pension payment, the reduction to your pension is permanent and irrevocable, even if your spouse dies before you or if you later separate or divorce.
Common scenarios
Choosing a survivor pension is a personal decision. The percentage you choose affects the amount of pension you receive during your lifetime and the amount that may continue to your spouse if you die first.
The examples below show how different survivor pension options may work in common situations. These are simplified illustrations to help you understand your options.
No one can predict the future. Many members focus on choosing a survivor pension that reflects their priorities by balancing income today with the level of protection they want to provide for their loved one.
Use the pension calculator to see the impact of different survivor benefit options on your pension. You may also want to speak with your financial advisor to help you decide.
10-year pension guarantee
If you die before receiving 10 years' worth of pension payments, your eligible survivor will receive 100% of your lifetime retirement pension for the balance of the 10 years. You can choose this benefit at a minimal cost.
If you don’t have an eligible spouse at retirement, this benefit is free and automatic. Any balance remaining on the 10 years of pension payments will be paid as a survivor pension to any dependent children or as a lump sum to your estate.