Example of Cost

Your pension will be permanently reduced to pay for your spouse's survivor pension and will be in addition to any reduction previously made for a former spouse. The reduction remains in effect even if your spouse dies before you.

From the following actuarial tables, you can see how providing a survivor pension to your new spouse can affect your pension. To calculate approximately how much a survivor pension costs, multiply your pension by the percentage indicated by cross-referencing your spouse's age to the survivor pension option.

Scenario

If you are a 65-year-old pensioner and would like to provide your 70-year-old spouse with a survivor pension of 60% of your pension, you would receive 95.93% of your current pension. If your annual pension is $25,000, it would be reduced to $23,983 to provide your spouse with an annual survivor pension of $15,000.

Table 1 - Values are based on your spouse's age and assume you are 65 years of age

  50% 55% 60% 65% 70% 75%
Age 45 50% survivor option 77.02 55% survivor option 74.72% 60% survivor option 72.42 65% survivor option 70.13 70% survivor option 67.83 75% survivor option 65.53
Age 50 50% survivor option 81.69 55% survivor option 79.86 60% survivor option 78.02 65% survivor option 76.19 70% survivor option 74.36 75% survivor option 72.53
Age 55 50% survivor option 86.32 55% survivor option 84.95 60% survivor option 83.58 65% survivor option 82.22 70% survivor option 80.85 75% survivor option 79.48
Age 60 50% survivor option 90.58 55% survivor option 89.64 60% survivor option 88.70 65% survivor option 87.75 70% survivor option 86.81 75% survivor option 85.87
Age 65 50% survivor option 94.09 55% survivor option 93.50 60% survivor option 92.90 65% survivor option 92.31 70% survivor option 91.72 75% survivor option 91.13
Age 70 50% survivor option 96.61 55% survivor option 96.27 60% survivor option 95.93 65% survivor option 95.59 70% survivor option 95.25 75% survivor option 94.83
Age 75 50% survivor option 94.91 55% survivor option 98.16 60% survivor option 97.98 65% survivor option 97.79 70% survivor option 97.61 75% survivor option 97.43

Table 2 - Values are based on your spouse's age and assume you are 60 years of age

  50% 55% 60% 65% 70% 75%
Age 40 50% survivor option 81.83 55% survivor option 80.01 60% survivor option 78.20 65% survivor option 76.38 70% survivor option 74.56 75% survivor option 72.74
Age 45 50% survivor option 85.48 55% survivor option 84.03 60% survivor option 82.58 65% survivor option 81.12 70% survivor option 79.67 75% survivor option 78.22
Age 50 50% survivor option 89.12 55% survivor option 88.03 60% survivor option 86.95 65% survivor option 85.86 70% survivor option 84.77 75% survivor option 83.68
Age 55 50% survivor option 92.49 55% survivor option 91.73 60% survivor option 90.98 65% survivor option 90.23 70% survivor option 89.48 75% survivor option 88.73
Age 60 50% survivor option 95.24 55% survivor option 94.77 60% survivor option 94.29 65% survivor option 93.82 70% survivor option 93.34 75% survivor option 92.87
Age 65 50% survivor option 97.22 55% survivor option 96.94 60% survivor option 96.66 65% survivor option 96.38 70% survivor option 96.10 75% survivor option 95.83
Age 70 50% survivor option 98.47 55% survivor option 98.32 60% survivor option 98.16 65% survivor option 98.01 70% survivor option 97.86 75% survivor option 97.71

Table assumptions
Valuation date: July 1, 2017
Pension inception date: July 1, 2008 (Table 1), July 1, 2013 (Table 2)
Member and spouse were born on July 1 and member is not disabled
Values represent the percentage of pension received after the reduction is applied