Why You Should Designate a Beneficiary For Your Pension
Do you ever wonder what would happen to your pension if you passed away before retiring? Well, there is a specific order of entitlement, based on pension legislation, for who might receive your STRP death benefit. It looks like this:
- Spouse at date of death
- Eligible dependent children* (if you have no legal spouse or your spouse has waived entitlement)
- Designated beneficiary (ies) (if you have no legal spouse and no dependent children)
- Your estate
*To align STRP’s provisions with those required under Saskatchewan pension legislation, effective July 1, 2024, dependent children will no longer have automatic entitlement to death benefits. Instead, they will be paid to the named beneficiaries or the estate in the case where there is no legal spouse.
Regardless of whether you have a spouse or not, it’s important that you have named beneficiaries for your STRP pension. If you don’t have one or more beneficiaries designated, then any pre-retirement death benefit not paid to a spouse will be paid to your estate. Settling an estate can be very time-consuming and costly, reducing the benefit your loved ones may get from your STRP death benefits. If you designate beneficiaries with the STRP, any death benefit would be paid to them directly by the Plan, avoiding your estate all together. Not only does this get your benefit into the hands of the people you choose faster and with less hassle, but it may also reduce probate and estate fees. It’s like a shortcut that saves time and money for your loved ones and ensures the benefit is going to the people you choose to receive it.
It’s also super easy to do. Simply fill in and submit the STRP Beneficiary Designation form available on our website and send it in to our office. You can update your designation as many times as you’d like and can designate anyone you’d like to receive the benefit, including charitable organizations.
Contact the STRP by phone at 1-800-667-7762 or by email at strp@stf.sk.ca if you have any questions or need help completing the form.