A Power of Attorney (“POA”) is a legal document that gives someone else the right to made decisions on your behalf. There are two types of POAs: one for property and the other for personal care. For your MSPP pension, only the POA for property is relevant because your pension is considered part of your property.
Some POAs are effective immediately while others are not. In either case, please provide InBenefits with a notarized copy of your POA for property. This way, your attorney will have the authority to act on your behalf if the need arises.
Although your pension is considered part of your family assets, dividing your pension between your self and your former spouse is not mandatory if your spousal relationship ends. Instead, you and your former spouse can decide whether or not your pension is included in the equalization of your net family assets when your marriage or common-law relationship ends.
If your pension is divided, your former spouse is entitled to a maximum of 50% of the pension value earned during the time you were married or together as common-law. Your former spouse would receive this value as a monthly MSPP pension. It’s very important to contact InBenefits about the steps involved in providing your former spouse with a share of your pension.
Please keep in mind that if you elected to provide a survivor pension to your former spouse at the time of your retirement because this person was your spouse at the time, this person will no longer qualify as a spouse at the time of your death and will not be entitled to the survivor pension. Also, if your pension was reduced at the time of retirement to provide a spousal survivor pension, and now you are separated or divorced from this spouse, the reduction to your pension is irrevocable.
As soon as your spousal status changes, you must advise InBenefits. We want to make sure that we pay any survivor benefit to the right person in the case you die.
If you start a new spousal relationship in retirement, you new spouse will not be eligible for a survivor pension under the MSPP.
At retirement, you may have chosen to receive a pension payment option with a minimum payment term such as 60 months. This option pays you a monthly pension for your lifetime with a minimum number of payments. For example, let’s assume that at retirement you chose to receive a Lifetime pension with a minimum of 60 monthly payments. If you die after receiving 12 payments, then your beneficiary or estate will receive the current value of the outstanding payments as a lump sum.
You may change your beneficiary at any time prior to receiving the minimum number of payments by completing a new Designation of Beneficiary form. Keep in mind that if your beneficiary dies before you, you may name a new beneficiary by filling out a new Designation of Beneficiary form and submitting it to InBenefits.
In the event of your beneficiary’s death and you haven’t named a new beneficiary, any death benefit from the MSPP will be paid to your estate in this situation – and may be subject to probate fees, estate taxes and creditors.
During retirement, if you change your address or personal information – please don’t forget to let us know because we use this information to contact you. You can update all your information by contacting InBenefits. Alternatively, you can update your information directly in the member portal. Click on the member sign-in button at the top of this page to access the My InSite member portal and follow the instructions.
The Income Tax Act does not permit you to receive a pension and accrue pension benefits in the same pension plan at the same time.
If you start your MSPP pension, have not reached age 71, and return to work with a contributing employer: Once you complete the hours of service required by your collective agreement, you must stop collecting your MSPP pension and you and your employer must start making contributions to the Plan on your behalf.
When you start your MSPP pension again, it will be recalculated to include the additional contributions if you have accumulated at least $100 in additional employee and employer contributions.