Pension Options (Retired Members)

Any pension option you chose at retirement will pay you an income for the rest of your life. The options you can choose from depend on whether you have a pension partner when you retire. Below you will find both current and historical pension available under LAPP.
 

Current Pension Options if You Have a Pension Partner (Joint Lifetime Options)
If you had a pension partner when you retired, you were required to choose a pension that continues to pay for as long as either of you is alive. This is called a Joint Lifetime pension. If you pass away first, your pension partner will continue to receive a lifetime pension.

If you chose a pension option that pays for your lifetime only, your pension partner would have had to choose to sign a Pension Partner Waiver, giving up the right to a survivor pension.

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Pension Option Name Member Pension Payment Duration Survivor Pension Duration Reduction on Death of Member or Pension Partner Guaranteed Term Benefit Paid to Chosen Beneficiaries if Both Member and Pension Partner Pass Away
Joint Lifetime Guaranteed at Least 5 Years Lifetime For survivor's lifetime No reduction 5 years from pension start date
Joint Lifetime Reduced by 1/3 Guaranteed at Least 5 Years Lifetime For survivor's lifetime Reduced by 1/3. Pension paid will be 2/3 of the original amount. 5 years from pension start date

Joint Lifetime Guaranteed At Least 5 Years

This option is paid for the lives of you and your pension partner. When either you or your pension partner pass away, the survivor will continue to receive the same amount of pension for life.

If both you and your pension partner have deceased within five years of the start of your pension, any payments remaining in this period will be paid to your chosen beneficiary.

Joint Lifetime Reduced by 1/3 Guaranteed At Least 5 Years

This option is paid for the lives of you and your pension partner. When either you or your pension partner pass away, the monthly pension paid to the survivor will be reduced by 1/3. This means that if your pension partner passes away before you, your pension will be reduced to 2/3 of the original pension amount.

If both you and your pension partner have deceased within five years of the date your pension started, any payments remaining in this period will be paid at the reduced amount to your chosen beneficiary.


Current Pension Options if You Do Not Have a Pension Partner (Single Lifetime Options)
The Single Lifetime pension options are paid to you for as long as you live. These options could only be chosen if you did not have a pension partner at retirement, or if your pension partner chose to sign a Pension Partner Waiver, giving up any right to a survivor benefit.

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Pension Option Name Member Pension Payment Duration Guaranteed Term Benefit Paid to Chosen Beneficiaries on Death of Member
Single Lifetime Lifetime None
Single Lifetime Guaranteed At Least 5 Years Lifetime Guaranteed term is 5 years from pension start date
Single Lifetime Guaranteed At Least 10 Years Lifetime Guaranteed term is 10 years from pension start date
Single Lifetime Guaranteed At Least 15 Years Lifetime Guaranteed term is 15 years from pension start date

Single Lifetime
This option is paid for your lifetime. No payments are paid to anyone after your death.

Guaranteed Term Options
These pension options are paid to you for as long as you live. If you pass away before the end of the guarantee period, the beneficiaries you have chosen will continue to receive payments until the end of the guarantee period. When you see your own pension options you will notice that the longer the guaranteed term is, the smaller the amount of pension.

Single Lifetime Guaranteed At Least 5 Years

A pension paid for as long as you live. If you die within 5 years of starting your pension, the beneficiaries you have chosen will continue to receive pension payments until the end of the 5-year guaranteed period.

Single Lifetime Guaranteed At Least 10 Years

A pension paid for as long as you live. If you die within 10 years of starting your pension, the beneficiaries you have chosen will continue to receive pension payments until the end of the 10-year guaranteed period.

Single Lifetime Guaranteed At Least 15 Years

A pension paid for as long as you live. If you die within 15 years of starting your pension, the beneficiaries you have chosen will continue to receive pension payments until the end of the 15-year guaranteed period.


Coordination
If you retired before age 65, you may have been able to coordinate your pension. Coordination is a feature of LAPP which allows some members to receive a temporary increase to their pension until they turn 65.

I'd like to read more about Coordination 


Historical Pension Options
LAPP has previously offered three joint lifetime pension options and one single lifetime guaranteed term pension option which are no longer available.

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Historical Joint Lifetime Pension Options 

Pension Option Name Member Pension Payment Duration Survivor Pension Duration

Reduction on Death of Member or Pension Partner

Guaranteed Term Benefit Paid to Chosen
Beneficiaries if Both Member and Pension Partner Pass Away
Joint Lifetime Lifetime For survivor's lifetime No Reduction None
Joint Lifetime Reduced by 1/3 Lifetime Lifetime Reduced by 1/3. Pension paid will be 2/3 of the original amount. None
Joint Lifetime Reduced by 1/2 Lifetime Lifetime Reduced by 1/2. Pension paid will be 1/2 of the original amount. None

Joint Lifetime
This option is paid for the lives of you and your pension partner. On the death of either you or your pension partner, the pension is paid to the survivor for his or her lifetime. The same monthly pension amount is paid as long as either you or your pension partner is alive.

There is no guarantee for this pension option. If both you and your pension partner pass away, no further payments are made.

Joint Lifetime Reduced by 1/3
This option is paid for the lives of you and your pension partner. On the first death of either you or your pension partner, the monthly payment is reduced by 1/3. This means that if your pension partner passes away before you, your pension will be reduced to 2/3 of the pension amount.

There is no guarantee for this pension option. If both you and your pension partner pass away, no further payments are made.

Joint Lifetime Reduced by 1/2
This option is paid for the lives of you and your pension partner. On the first death of either you or your pension partner, the monthly payment is reduced by 1/2. This means that if your pension partner passes away before you, your pension will be reduced to 1/2 of the pension amount.

There is no guarantee for this pension option. If both you and your pension partner pass away, no further payments are made.

 

Historical Single Lifetime Pension Options

Pension Option Name Member Pension Payment Duration Guaranteed Term Benefit Paid to Chosen
Beneficiaries on Death of Member

 

Single Lifetime Guaranteed At Least 20 Years (Guaranteed 20-year term) Lifetime Guaranteed term is 20 years from pension start date

Single Lifetime Guaranteed At Least 20 Years (Guaranteed 20-year term)
This pension option is paid to you for as long as you live. If you pass away before the end of the 20-year guarantee period, the beneficiaries you have chosen will continue to receive payments until the end of the 20-year guarantee period.