Issue 4, 2010

IPF 75% Husband-and-Wife Pension Provides Added Protection for Spouse

In compliance with the Pension Protection Act of 2006, the International Pension Fund (IPF) U.S. Board of Trustees amended the Plan’s rules, effective January 1, 2008, to provide an additional benefit payment option for those applicants who elect the Husband-and-Wife Pension. The 75% Husband-and-Wife Pension is offered in addition to the 50% Husband-and-Wife Pension. The following example demonstrates the difference in benefit levels between the two Husband-and-Wife pension options.   

EXAMPLE: George is 64 and entitled to retire on a normal pension of $308 per month. George’s wife is also 64. Unless he elects otherwise, George’s pension under the 50% Husband-and-Wife form will be reduced by 10% so that he will receive a benefit of $278 per month.

Upon his death, George’s wife will receive a benefit equal to 50% of what he was receiving, or $139 per month. If George’s wife predeceases him, the Husband-and-Wife Pension is cancelled and he will receive a monthly benefit of $308 commencing the first of the month following the death of his wife.

Under the 75% Husband-and-Wife pension option, George would receive $264 per month, a 14.3% reduction in normal pension benefits and his wife would receive 75% of George’s benefit for the remainder of her life, or $198 monthly, should he pre-decease her. Once again, if George’s wife predeceases him, the Husband-and-Wife Pension is cancelled and George will receive a monthly benefit of $308.

The reductions in your benefits depend on your age and your spouse’s age. Since the reduction will vary from one case to another, you may ask the Fund office to provide you with the actual figures when you apply or go to the Pension Option Form Reduction Chart located within the IPF Pension Application form at http://www.ipfweb.org/ipf/forms/pension_application.pdf for examples of specific reductions.

IPF Canada Husband-and-Wife Options

IPF Canada participants are required to take a 60% joint and survivor benefit if married. However, participants and their spouses may waive this standard form of payment by filing a waiver with the Fund office and then choose from five optional forms of payment including life guarantee, life guarantee with 10 or 15 years of payments for a spouse, 50%, 75%, or 100% joint and survivor options, and a level income option. Canadian participants can view details on these forms of payment at www.ipfweb.org/cn_ipf/faqs/forms_payment.htm.  

Should you have any questions concerning these options, or have any other questions regarding IPF benefits, please contact the Fund office at dstupar@ipfweb.org.