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MARCH 21, 2024

Is my pension guaranteed?

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Yes, your MEPP pension is guaranteed for the number of years you choose on your application. There’s a common misunderstanding that your pension is only paid for the guaranteed period. That is incorrect. Your MEPP pension is paid to you for your entire life regardless of the guarantee period.

The guarantee period just means your payments are guaranteed for at least that long, even if you die before the guarantee period ends. If you are in a spousal relationship, your guarantee period options are five, 10, or 15 years. If you are single, you get a 15-year guarantee period.

For example, Nora is in a spousal relationship with Imran. She starts her pension with a 10-year guarantee period and a 75 per cent survivor benefit. In year seven, Nora dies. For the next three years, Imran will receive the FULL monthly pension. After the 10-year guarantee period, the pension will drop to 75 per cent survivor benefit. Imran will receive 75 per cent of Nora’s pension for the rest of his life. 

Here is another example. Dave is single. He gets a 15-year guarantee period. He will receive his full monthly pension payments if he is alive. But if Dave dies in year 10, the named beneficiary will receive Dave’s FULL monthly pension payments until the end of the 15-year guarantee period. After the 15-year guarantee, no more payments would be made to the beneficiary. If Dave happens to die after the guarantee period, no payments are made to the beneficiary(ies).

We’ve got you ... your MEPP pension is guaranteed.

Please see the MEPP In-Depth on Pension Options on our website for more information.