In the Event of Death, What Does RREGOP Provide for Your Loved Ones?

No one likes thinking about it, but it is important to think about the financial impact of your death on your loved ones. Your pension plan, RREGOP, provides for a pension for your spouse, which is called the surviving spouse's pension. Even if you do not have a spouse, your heirs could receive money.

Recognition of the spouse

Let's start by better understanding the definition of spouse under RREGOP. A spouse is the person with whom you were married or in a civil union at the time of your death. If this does not apply to you, your spouse may be recognized as a de facto spouse. For this to be the case, you must publicly present your partner as your spouse, for example to your family or friends, or on official documents such as an income tax return. You must also have been living together as a couple for at least three years, or for one year if a child has been born or is to be born of your union, if you have adopted a child together, or if the child of one of the spouses was adopted by the other spouse. In all cases, you must not be married or in a civil union with another person.

A de facto separation (no longer living together) does not end the marriage or civil union, just as a judgment of separation from bed and board (legal separation) does not end a marriage. You must divorce or officially dissolve a previous union.

Under the Québec Pension Plan, the definition of spouse is not the same. You can consult the Your spouse dies: what steps should you take? web page, which explains what you can do about your finances when your spouse dies.

Benefits under RREGOP

It is possible that you could die before receiving a reduced or unreduced pension. In that case, your spouse, or if you do not have one, your heirs will receive money:

• If you have less than two years of service, they will receive a refund of the contributions you made into your plan, plus accrued interest.
• If you have two years of service or more, they will receive the highest amount between the contributions you made into your plan, plus accrued interest, and the equivalent of the value of your pension. That amount can also be paid into a registered retirement savings plan (RRSP).

If you die when you could have received a retirement pension, your spouse will receive a surviving spouse's pension until his or her death. The pension will correspond to half the pension amount you would have been entitled to at the time of your death, after the reduction that applies at age 65, regardless of your or your spouse's age. If you do not have a spouse recognized under RREGOP, your heirs will receive a refund of the contributions you made into your plan, plus accrued interest.

If you die while receiving your retirement pension, your partner will receive a surviving spouse's pension until his or her death. The pension will correspond to 50% of your pension. However, when you retire, you can choose to reduce your own pension by 2% to leave your spouse with 60% of your pension instead of 50%. To make this choice, you can base your decision on your state of health and your spouse's financial situation in retirement. Please note that the reduction of the pension provided for at age 65 will apply for your spouse, even if you die before that age. If you do not have a spouse, your heirs will receive the contributions you made into your pension plan, plus accrued interest, minus the pension payments you had already received.

Consult the Survivors' benefits under public-sector pension plans section to find out more on the benefits provided by RREGOP in the event of death.