10-year Pension Guarantee Option

If you die before receiving 10 years' worth of pension payments, this option provides 100% of your CPP-adjusted pension to your eligible spouse for the balance of the 10 years at a minimal cost. After that, your eligible spouse will collect the survivor's pension chosen prior to retirement. This election must be made prior to receiving your first pension payment.

If your eligible spouse also dies before the 10-year pension guarantee ends, eligible dependent children will receive a survivor pension from any balance remaining on the 10 years of pension payments. If there are no dependent children, any balance remaining will be paid as a lump sum to your eligible spouse's estate.

For members who have no eligible spouse when they receive their first pension payment, this benefit is automatically provided at no cost. 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.

Our recommendation

We recommend that our members opt for the 10-year guarantee because it's considered to be a very affordable form of insurance. The lifetime reduction for this option is 0.1% of your CPP-adjusted annual pension (or about $44 per year for the average career teacher).

Here's an example of the reductions that apply to an average unreduced teacher's pension of $51,000.

Cost of 10-year guarantee option
($51,000
Average unreduced pension
- $6,220
CPP adjustment
- $450)
60% survivor pension cost
x 0.1%
10-year pension guarantee reduction factor
= $44
Cost