Joint and Survivor Pension Option

An irrevocable pension option at the time of retirement, to provide income to a spouse in the event of the prior death of the pensioner, usually resulting in a reduced pension due to the inherent increase in the duration of pension benefit payments. A spouse may waive rights to the pension benefits but cannot be compelled to do so. Couples should consider whether an insurance policy on the life of the pensioner, sufficient to provide for the spouse, may be less costly than the reduction in pension benefits, particularly in light of the greater control it affords both parties in the future.

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April 17th, 2024