About Forms of Pension

The normal form of pension under the CSI pension plan - i.e., the normal method of paying a pension - is called a “single life pension with a 10-year guarantee” (Single Life G10). It is suitable for a single person, because it pays a pension for the member"s lifetime. If you choose this form of pension, and upon your death you have not received at least 10 years of pension payments, the remaining payments in the 10-year guarantee period will be paid to your beneficiary(ies), or to your estate if you have not named a beneficiary.

For a married plan member, most provinces require that a pension be paid in a form that guarantees a pension to the spouse after the member’s death, unless the spouse waives his/her right to this form of pension. This is called a “joint and survivor pension” (J&S). The required percentage that continues to the spouse is 60% or 66.67%, depending on your province of residence. Under this form of pension, the initial pension payment is reduced (compared to the single life form) because the pension is guaranteed to extend over two lifetimes instead of one; thus, it is estimated to cost more.

Full Issue: No. 156 - April 27, 2005

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