Pension Options
MEPP offers pension options at retirement to suit members' specific needs.
The options available to members will depend on whether they have a pension partner when they retire. Once a member has selected their pension option and their pension has started to be paid, they cannot change their pension partner. However, members can update their beneficiaries at any time by logging in to Your Pension Profile or by contacting us.
Section Contents
Joint Lifetime Options
If the member has a pension partner when they retire, they must choose one of the Joint Lifetime pension options unless their pension partner chooses to complete a pre-retirement death benefit waiver, giving up the right to a survivor pension.
A Joint Lifetime pension means that, if the member passes away before their pension partner, the pension partner will continue to receive a lifetime pension.
| Pension Option Name | Member Pension Duration | Survivor Pension Duration | Reduction on Death of Member or Pension Partner | Guaranteed Term Benefit Paid to Chosen Beneficiaries or Estate if Both Member and Pension Partner Pass Away |
|---|---|---|---|---|
| Joint Lifetime with Reduced Survivor Benefit | Lifetime | For survivor's lifetime | For service earned after 1991, the pension partner benefit is 66 2/3% of the member’s pension. For service earned before 1992, the pension partner benefit is 75% of the member’s pension. | None |
| Joint Lifetime with Reduced Survivor Benefit Guaranteed At Least 10 Years | Lifetime | For survivor's lifetime | For service earned after 1991, the pension partner benefit is 66 2/3% of the member’s pension. For service earned before 1992, the pension partner benefit is 75% of the member’s pension. The pension is not reduced until the end of the 10-year guaranteed term. | 10 years from retirement date |
| Joint Lifetime Guaranteed At Least 10 Years | Lifetime | For survivor's lifetime | No reduction. | 10 years from retirement date |
| Joint Lifetime Reduced By 1/3 Guaranteed At Least 10 Years | Lifetime | For survivor's lifetime | Reduced by 1/3; pension paid will be 2/3 of the original amount. The pension is not reduced until the end of the 10-year guaranteed term. | 10 years from retirement date |
Joint Lifetime with Reduced Survivor Benefit
This option is the normal form for members with a pension partner, and it is the base from which all other pension partner pension options are calculated. If you pass away before your pension partner, a reduced pension benefit will be paid to your pension partner for the duration of their life.
For service earned before 1992, the pension partner benefit is 75% of the benefit amount you were receiving before you passed away. For service earned after 1991, the pension partner benefit is 66 2/3% of your pension.
Joint Lifetime Guaranteed At Least 10 Years
This option will be paid to the member for their lifetime. If the member passes away before their pension partner, pension benefits will be paid to the pension partner for the duration of their life.
Upon the death of either the member or their pension partner, the same monthly benefit will continue to be paid to the survivor. This payment is paid as long as either the member or their pension partner is alive.
If both the member and their pension partner pass away within 10 years from the date the member’s pension begins, a benefit is paid to the member’s chosen beneficiary(ies) or estate for the rest of the 10-year term.
Joint Lifetime with Reduced Survivor Benefit Guaranteed At Least 10 Years
This option will be paid to the member for their lifetime. If the member passes away before their pension partner, pension benefits will be paid to the pension partner for the duration of their life.
If the member passes away before the end of the 10-year guaranteed term, the same monthly payments will continue to the member’s pension partner. At the end of the 10-year term, these payments will be reduced.
If the member passes away after the end of the 10-year guaranteed term, the monthly payments will remain the same until the member’s death, at which time the monthly payments paid to the member’s pension partner are immediately reduced.
For service before 1992, the pension partner benefit is 75% of the member’s pension. For service after 1991, the pension partner benefit is 66 2/3% of the member’s pension.
Joint Lifetime Reduced by 1/3 Guaranteed At Least 10 Years
This option will be paid to the member for their lifetime. If the member passes away before their pension partner, pension benefits will be paid to the pension partner for the duration of their life.
Upon the death of either the member or their pension partner, the pension benefit will be reduced by 1/3 at the end of the 10-year guaranteed period. However, it is not reduced by 1/3 until the end of the guarantee period if the first death occurs during the guaranteed period. This reduced pension will continue to be paid to the survivor for their life. This means that if the member’s pension partner dies before them, the member’s pension will be reduced to 2/3 of the pension amount.
If both the member and their pension partner pass away within 10 years from the date the member’s pension begins, a benefit is paid to the member’s chosen beneficiary(ies) or estate for the amount of time remaining in the 10-year term.
More on Death After Retirement
Single Lifetime Options
These options can only be chosen if the member does not have a pension partner at retirement, or if the pension partner chooses to complete a pre-retirement death benefit waiver, giving up any right to a survivor benefit.
| Pension Option Name | Member Pension Duration | Guaranteed Term Benefit Paid to Chosen Beneficiaries or Estate on Death of Member |
|---|---|---|
| Single Lifetime Guaranteed At Least 5 Years | Lifetime | Guaranteed term is 5 years from retirement date |
| Single Lifetime Guaranteed At Least 10 Years | Lifetime | Guaranteed term is 10 years from retirement date |
| Single Lifetime Guaranteed At Least 15 Years | Lifetime | Guaranteed term is 15 years from retirement date |
Single Lifetime Guaranteed Term Options (5, 10 or 15 years)
hese pension options are also paid to the member for as long as they live. If the member passes away before the end of the guaranteed period (5, 10, 15 years), their designated beneficiary(ies) will continue to receive payments until the end of that term.
More on Death After Retirement
Coordination
Eligible MEPP members who retire before the age of 65 have the option to receive a temporary pension payment increase. This option temporarily provides a higher pension payment amount in early retirement but also results in a permanently reduced pension after turning 65 years of age, when the coordination amount is removed and the base pension is reduced. Coordination ends upon the death of the member.