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The following questions and answers were provided by Sears Canada to assist our retirees: Q1. How do my pension option and survivor benefits work? A1. The type of pension payment option you select determines how your pension will be paid. Single Life option You may have selected a pension option with no guarantee period. This pension stops when you die. Your beneficiary or estate is not entitled to any payments after your death. If you were married at the date of retirement and your spouse waived their right to the survivor pension, you would have been allowed to select a Single Life pension. Your spouse will not receive a pension after your death. The amount of pension payable to you is lower as you selected longer guarantee periods. Survivor pension option The pension calculation is based on the amount of the spousal pension you chosen, your age and the age of your spouse at the time of your retirement. There are four options to choose from. Each option will provide a different level of pension payment to your surviving spouse ranging from ½ of your pension payment to 100% of the pension you were receiving at you date of death. This form of pension guarantees you a monthly pension payment for life. If your spouse outlives you, he or she will continue to receive a monthly payment for his or her lifetime. The pension payment is guaranteed for 10 years should both you and your spouse die within that period. If this was to occur, any remaining pension amount payable in the guarantee period would be paid to your estate or beneficiary. With a joint and survivor pension, the value of the pension is spread over two lifetimes. That is why the joint and survivor pension is smaller than a single pension. Q2. If my marital status changes after retirement, can I change my pension type? A2. Unless allowed under provincial regulations (example Quebec), you cannot change your pension option after your retirement date. Q3. How do I change my beneficiary? A3. If you were married at the time of retirement, your spouse must be your beneficiary. If you are separated from your spouse, your spouse remains your beneficiary until the final divorce judgment has been delivered. Should your spouse pre-decease you, you may chose the beneficiary of your choice. If you should remarry or marry for the first time after retirement you do not have to make your new spouse your beneficiary. Your new spouse would not be entitled to a spousal joint and survivor pension. In general, if your marital status changes after your date of retirement:
Q4. How do I know what benefit options I selected and what benefits my survivors will get? A4. You will receive an annual statement to remind you of the pension selection you made and to provide your beneficiaries or estate information on survivor benefits. If you qualify for any Sears Benefit Plan offerings (Health and Dental, Group Life or Retiree discount) these will be listed for you. Contact information will be provided should you or your beneficiaries need to contact Sears. Please keep this retiree statement in a secure location with the rest of your estate documents. Q5. How does pension indexing work? A5. Sears indexing is referred to as "partial indexing" as it does not provide 100% of the increase in the Consumer Price Index. Federal Plans are indexed at 100% of the year over year change in CPI. The CPI is a measure of inflation in the prices of everyday goods and services. Indexing is applied on January 1 of each year where it is payable. In the year you turn 65, you receive a partial increase reflecting the number of months for which you are 65. If, after you reach 65, the CPI goes up by more than 2% in any year; your Sears pension will be increased by 3/4 of the CPI amount that is over 2%. The index amount will vary on an annual basis and will not be paid in any year where the annual change in the inflation rate is less than 2%. Q6. Can I still work after retirement? A6. You are able to work at Sears Canada Inc. or any other job without affecting your pension. If you are re-hired by Sears Canada Inc. you are no longer eligible to participate in the SRRP plan. You may become eligible to participate in other Sears benefit plans if meet the eligibility requirements and are not over age 65. Q7. Who should I contact to obtain further information? A7. If you require any further assistance in your retirement please contact the SEARS HR SERVICE CENTER, FINANCE BENEFITS TEAM at 1-888-444-9444 (416-572-7300 in the metro Toronto area), or
For information from the government regarding CPP/QPP or OAS, please contact Social Development Canada. Visit their website at http://www.sdc.gc.ca/en/home.shtml, or phone one of these toll free numbers in Canada or the US:
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