Choose Plan Option


There are eight different plans to choose from depending on whether you are single or married/common-law. This is the most important decision you will have to make before you retire. Choosing a plan option should be a personal decision based on your specific situation. You want to be sure to select the plan that is best for you.

The amount of pension you receive when you retire and the amount that is left to your surviving partner or beneficiary in case of death varies under each plan.

If you are single, Plans A and B are the options available to you. If you are married or living common-law and you and your spouse* are cohabiting at the time of your retirement, you can choose any plan option.

* "Spouse" includes your married or common-law partner including same-sex partner provided you are not living separate and apart due to a relationship breakdown at the time you commence your pension.

Once your pension starts, you cannot change your plan option and you cannot name a new beneficiary under Plans C to H, even if you remarry.


Make your decision carefully as your Plan Option cannot be changed once you receive your first pension payment.



In all cases, if the pension payments made to you and your beneficiary(ies), if applicable, total less than your contributions plus compounded interest at your retirement date, the difference is refunded to your estate or beneficiary. You may wish to designate a contingent beneficiary(ies) for this purpose. Your pension contributions and interest are generally paid out within eight to nine years of collecting pension.

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When you check your pension estimate, know that:

  • The gross pension shown is before deductions
  • The only mandatory deduction is income tax
  • Optional deductions include extended health premiums, home insurance premiums, and the Retired Teachers' Association of Manitoba membership fees

Plan A - Ordinary Life

You will receive the full base pension for your lifetime. When you pass away, the pension will stop. Plan A is considered the standard form of pension for a single member.

Example:
If your base pension is $2,500 per month, you receive the full amount of $2,500 per month for your lifetime. When you pass away, your pension ends.

Why would I choose this option?

  • This plan pays the highest monthly pension for your lifetime and is not affected by your partner's death.
  • You are single with no dependants.
  • Your partner has a shorter life expectancy.
  • Your partner is financially secure.
  • You are in good health.

What should I take into consideration?

A monthly payment will not be provided to your partner or dependants after your death.

Plan B - 10 or 15-Year Guarantee

You will receive less than the base pension for your lifetime. The pension payment is guaranteed for 10 or 15 years from your retirement date. If you pass away before the end of the 10 or 15-year guarantee period, the monthly pension continues to your beneficiary or estate for the remainder of this period only.

If you live beyond the guarantee period, the monthly pension continues for your lifetime.

Example:
If you are age 55 and your base pension is $2,500 per month, under Plan B – 10-year Guarantee you receive $2,493 per month for your lifetime. If you pass away during the first 10 years, your beneficiary receives the same amount for the remainder of the 10 years, but no income after that.

Why would I choose this option?

  • You are single with dependants.
  • If you pass away within the guarantee period of 10 or 15 years, your beneficiary or estate will receive the same amount for the remainder of this period.
  • This is the only option that allows you to name anyone as your beneficiary and change this designation any time during the guarantee period.
  • If your partner has a shorter life expectancy, it guarantees your pension will not change if he or she passes away. It also provides protection for your partner in case something unexpected happens to you during the first 10 or 15 years.
  • If you marry or live common-law during your retirement, it provides an option to leave income to your new partner during the guarantee period, as you can change your beneficiary any time.

What should I take into consideration?

  • You receive slightly less pension than you would under Plan A.
  • A monthly income will not be provided to your partner or beneficiary if you pass away after the end of the guarantee period of 10 or 15 years.

Plan C - Full to Last Survivor
(Member or Partner)

You will receive less than the base pension for your lifetime. Upon the death of either you or your partner, the pension continues in the same amount to the survivor for life.

Example:
If you and your partner are age 55 and your base pension is $2,500 per month, you receive $2,355 per month for your lifetime. On the death of either you or your partner, the benefit remains at $2,355 per month to the survivor for life.

Why would I choose this option?

  • This is the only plan that allows you to leave the full pension to your partner after your death. This may be important if your partner has no pension income. It also provides you with the full pension if your partner passes away.
  • The pension remains the same no matter who passes away first. This may be critical if you have dependants, or financial commitments.

What should I take into consideration?

  • With Plan C, you will receive the lowest amount of monthly pension.
  • If your partner is significantly younger, the pension will be lower than the amounts payable under other plan options because the pension will likely be paid for a longer period of time.

Plan D - 2/3 to Last Survivor
(Member or Partner)

Depending on the age of your partner, you may receive more or less than the base pension. Upon the death of either you or your partner, the pension reduces to 2/3 and is paid to the survivor for life.

If you have a partner, you must choose Plan D unless your partner signs a waiver on the Pension Application. Plan D is considered the legislated form of pension for a married/common-law member under the TRAF plan.

Example:
If you and your partner are age 55 and your base pension is $2,500 per month, you receive $2,455 per month. On the death of either you or your partner, the pension reduces to $1,637 per month and is paid to the survivor for life.

Why would I choose this option?

  • This plan provides a higher initial pension than Plans C and G, while still providing 2/3 of the pension to the survivor.
  • If your monthly pension is high, a reduction to 2/3 may still be a sufficient income for the survivor.
  • This plan provides an equal TRAF pension for you and your partner regardless of who passes away first.
  • You will have other sources of income in retirement.

What should I take into consideration?

  • If your partner passes away before you, your pension reduces to 2/3.
  • This plan may not meet your income needs if you expect your TRAF pension to be the main source of your retirement income.

Plan E - 1/2 to Last Survivor
(Member or Partner)

Depending on the age of your partner, you may receive more or less than the base pension. Upon the death of either you or your partner, the pension reduces to 1/2 and is paid to the survivor for life.

Example:
If you and your partner are age 55 and your base pension is $2,500 per month, you receive $2,507 per month. On the death of either you or your partner, the pension reduces to $1,254 per month and is paid to the survivor for life.

Why would I choose this option?

  • This plan provides a higher monthly initial pension than Plans C, D, F and G, while still providing 1/2 of the pension to the survivor.
  • You will have other sources of income in retirement.
  • You expect to receive a large amount of money such as an inheritance.

What should I take into consideration?

  • If your partner passes away before you, your pension reduces to 1/2
  • This plan may not meet your income needs if you expect your TRAF pension to be the main source of your retirement income.

Plan F - 1/2 to Beneficiary
(Partner Only)

You will receive less than the base pension for your lifetime. If your partner passes away before you, your monthly pension does not change. However, if you pass away before your partner, your pension reduces to 1/2 and is paid to your partner for life.

Example:
If you and your partner are age 55 and your base pension is $2,500 per month, you receive $2,425 per month for your lifetime. If your partner passes away first, your pension remains at $2,425 per month. If you pass away first, your partner receives $1,215 per month for life.

Why would I choose this option?

  • Your pension remains unchanged if your partner passes away first.
  • Your partner does not need the full pension but you still want to leave some additional income to your partner.

What should I take into consideration?

  • This plan leaves 1/2 the pension to your partner, so it may not be ideal if you have dependants or financial commitments.
  • If you have a shorter life expectancy, you should carefully consider your partner's source of income should you pass away first.

Plan G - 2/3 to Beneficiary
(Partner Only)

You will receive less than the base pension for your lifetime. If your partner passes away before you, your monthly pension does not change. However, if you pass away before your partner, your pension reduces to 2/3 and is paid to your partner for life.

Example:
If you and your partner are age 55 and your base pension is $2,500 per month, you receive $2,401 per month for your lifetime. If your partner passes away first, your pension remains $2,401 per month. If you pass away first, your partner receives $1,601 per month for life.

Why would I choose this option?

  • Your pension remains unchanged if your partner passes away first.
  • Similar to Plan D, it leaves 2/3 of your pension to your partner.
  • Your partner does not need the full pension, but you still want to leave some additional income to your partner.

What should I take into consideration?

  • This plan leaves only 2/3 of the pension to your partner, so it may not be ideal if you have dependants or financial commitments.

Plan H - Personalized Option
(Partner Only)

If Plans A to G do not suit your needs, you can design your own plan. This pension must be paid monthly and it must be acceptable under the Income Tax Act (Canada).

Why would I choose this option?

  • If one of the existing plans is not quite right for you, Plan H allows you to adjust the levels or add a guarantee.

What should I take into consideration?

  • TRAF's actuary must ensure that the plan is feasible.

  Plan Option Comparisons