Which of the following statements about Maria’s pension is CORRECT?

Ontario residents, Juan and Maria, are a married couple approaching retirement. They have asked their representative Carlow to review the details of Maria’s defined benefit plan (DBPP).

Which of the following statements about Maria’s pension is CORRECT?
A . Maria would be entitled to an increased benefit if Juan waived his survivor benefit.
B . Juan would be entitled to receive at least 50% of Maria’s pension upon Maria’s death.
C . With Juan’s consent, Maria can choose to reduce the survivor benefit to 25% of her normal pension amount.
D . Juan will be entitled to the survivor benefit even if they are separated at the time of Maria’s death.

View Answer

Answer: B

Explanation:

In Ontario, married members of a defined benefit pension plan (DBPP) are typically required to provide at least a 50% survivor benefit to their spouse upon their death unless the spouse waives this right. LLQP materials covering pension plans indicate that this spousal protection is standard for defined benefit plans, and Maria’s pension would provide at least 50% to Juan as the surviving spouse.

Options like reducing the survivor benefit below 50% are generally not permitted under Ontario pension law, and a waiver must be in place for any changes.