Pension Options
SFPP offers several pension options, all of which pay you an income for the rest of your life. The options you can choose from depend on whether you have a pension partner when you retire.
Pension Options if You Have a Pension Partner (Joint Lifetime Options)
If you have a pension partner when you retire, you must choose a pension that pays for as long as either of you is alive. This is called a Joint Lifetime pension. This means, for example, if you pass away first, your pension partner will continue to receive a pension for their lifetime.
If you would like to choose a pension option that pays for only your lifetime, your pension partner can complete a waiver giving up their right to survivor benefits.
Joint Lifetime Options Explained
| Pension Option Name | Member Pension Payment Duration | Survivor Pension Payment Duration | Reduction on Death of Member or Pension Partner | Benefit Paid to Chosen Beneficiary(ies) or Estate |
|---|---|---|---|---|
| Joint Lifetime With Reduced Survivor Benefit Guaranteed at Least 5 Years | Lifetime | For survivor's lifetime | Pension payments reduced by 35% if member passes away. Pension paid to member's pension partner will be 65% of the original amount. No reduction on death of pension partner. | Benefit is paid to beneficiary or estate for the remainder of the guaranteed term if both member and pension partner pass away within 5 years of the pension start date. |
| Joint Lifetime Guaranteed at Least 5 Years | Lifetime | For survivor's lifetime | No reduction | Benefit is paid to beneficiary or estate for the remainder of the guaranteed term if both member and pension partner pass away within 5 years of the pension start date. |
| Joint Lifetime Reduced by 1/3 Guaranteed at Least 5 Years | Lifetime | For survivor's lifetime | Pension payments reduced by 1/3 on death of member or pension partner. | Benefit is paid to beneficiary or estate for the remainder of the guaranteed term if both member and pension partner pass away within 5 years of the pension start date. |
Joint Lifetime With Reduced Survivor Benefit Guaranteed at Least 5 Years
This option is paid for your lifetime. If you pass away before your pension partner, 65% of the monthly payment will continue to be paid to them for life. The pension is not reduced if your pension partner passes away first.
If both you and your pension partner pass away within 5 years from the date your pension begins, the benefit is paid to the chosen beneficiary(ies) or estate until the end of the 5 year period.
For pensions that started before Jan. 1, 1994, the pension partner is determined upon the pensioner’s death, not when the pension commenced. To be eligible, this pension partner must have been married to, or lived with, the pensioner for at least 5 years prior to the pensioner’s death.
Joint Lifetime Guaranteed at Least 5 Years
This option is paid for the lives of you and your pension partner. When either you or your pension partner pass away, the survivor will continue to receive the same amount of pension for life.
If both you and your pension partner pass away within 5 years of the start of your pension, any payments remaining in this period will be paid to the chosen beneficiaries or estate.
Joint Lifetime Reduced by 1/3 Guaranteed at Least 5 Years
This option is paid for the lives of you and your pension partner. When either you or your pension partner pass away, the monthly pension paid to the survivor will be reduced by 1/3. This means that if your pension partner passes away before you, your pension will be reduced to 2/3 the original pension amount.
If both you and your pension partner pass away within 5 years of your pension start date, any payments remaining in this period will be paid at the reduced amount to the chosen beneficiaries or estate.
Pension Options if You Do Not Have a Pension Partner (Single Lifetime Options)
The Single Lifetime pension options are paid for as long as you live. These options can only be chosen if you don't have a pension partner at retirement, or if your pension partner completes a waiver giving up their right to survivor benefits.
Single Lifetime Options Explained
| Pension Option Name | Member Pension Payment Duration | Guaranteed Term Benefit Paid to Chosen Beneficiary(ies) on Death of Member |
|---|---|---|
| Single Lifetime | Lifetime | None |
| Single Lifetime Guaranteed at Least 5 Years | Lifetime | Benefit paid for remainder of guaranteed term if member passes away within 5 years of pension start date |
| Single Lifetime Guaranteed at Least 10 Years | Lifetime | Benefit paid for remainder of guaranteed term if member passes away within 10 years of pension start date |
| Single Lifetime Guaranteed at Least 15 Years | Lifetime | Benefit paid for remainder of guaranteed term if member passes away within 15 years of pension start date |
Single Lifetime
This option is paid for your lifetime. No payments are paid to anyone after your death.
Guaranteed Term Options
These pension options are paid to you for as long as you live. If you pass away before the end of the guaranteed period, your chosen beneficiary(ies) or estate will continue to receive payments until the end of the guaranteed period.
Single Lifetime Guaranteed at Least 5 Years
This option is paid for your lifetime. If you pass away within 5 years of starting your pension, your chosen beneficiary(ies) or estate will continue to receive pension payments until the end of the 5-year guaranteed period.
Single Lifetime Guaranteed at Least 10 Years
This option is paid for your lifetime. If you pass away within 10 years of starting your pension, your chosen beneficiary(ies) or estate will continue to receive pension payments until the end of the 10-year guaranteed period.
Single Lifetime Guaranteed at Least 15 Years
This option is paid for your lifetime. If you pass away within 15 years of starting your pension, your chosen beneficiary(ies) or estate will continue to receive pension payments until the end of the 15-year guaranteed period.