If you face a shortened life expectancy, you may be able to withdraw the commuted value of your pension before retirement without having to sever your employment relationship. The commuted value of your pension is the lump sum you would need today to replace your future pension.

To qualify for a shortened life expectancy benefit, you need to verify a life expectancy of less than two years. If you have an eligible spouse, he or she must consent to the withdrawal because a spouse forfeits the right to survivor benefits if you take a shortened life expectancy benefit.

Before applying for the benefit, check with your employer and long-term disability (LTD) carrier to ensure you will continue to qualify for medical and long-term disability benefits if you receive your pension benefits early.

If you die before receiving a shortened life benefit, pre-retirement death benefits will be paid instead.

Disability pension

Instead of taking a shortened life expectancy benefit, you may want to consider a disability pension. When comparing the two benefits, keep the following in mind:

Requirement/Feature Disability pension Shortened life expectancy benefit
Survivor pension provided Yes No*
Must terminate employment in education Yes No
Must stop receiving benefits under an employer-sponsored long-term income protection program Yes No

*The value of the survivor benefit is included in the shortened life expectancy benefit you receive.

Is someone applying or requesting personal information on your behalf?

If someone is contacting us on your behalf, you'll need to provide one of these two documents:

  • Power of Attorney for Property (if you cannot personally sign the application)
  • Written authorization (to release your personal information to a third party assisting with the application process)