Can I name a beneficiary on my Ontario workplace pension?

Many Ontario workplace pension plans allow you to name a beneficiary, but the rules are more restricted than for RRSPs or TFSAs. Ontario's Pension Benefits Act and specific plan rules govern who can receive pension benefits on death, and they often give priority to a surviving spouse or common-law partner.

For defined benefit pension plans, death benefits typically depend on the type of benefit option selected and whether the plan member was receiving a pension or was still accruing benefits at death. If you were receiving a pension with a "joint and survivor" option, your spouse or partner continues to receive a survivor pension. If you had a "single life" pension, payments end at your death.

If you die before retirement, most plans pay out the commuted value of your accrued benefit or a death benefit, which may be payable to your estate or a named beneficiary, depending on the plan.

Your plan administrator can tell you what your specific options are, and they will have the forms for naming or updating a beneficiary. It is worth checking and updating your pension beneficiary designation after any major life change, just as you would for RRSPs.