Section 23.2 of the Pension Benefits Standards Regulations, 1985 (PBSR) states that the plan administrator must provide information to a person and their spouse or common-law partner before that person enters into an agreement with their employer regarding phased retirement. This required information is aimed to help the person make an informed choice about whether or not to enter into a phased retirement arrangement, as compared to their other options of continuing to work without receiving any pension benefit or fully retiring.
A current plan member considering phased retirement must be provided with a retirement statement and a statement containing information about the phased retirement benefit and information necessary to estimate the member’s future pension at full retirement (i.e. after phased retirement). These statements must also be provided to the member’s spouse or common-law partner.
A retiree returning to work must be provided with a statement containing information about the phased retirement benefit and information necessary to estimate their future pension at full retirement (i.e. after the phased retirement period). This statement must also be provided to the retiree’s spouse or common-law partner. In addition, where the retiree is in receipt of a joint and survivor benefit, the consent of the spouse or common-law partner of the retiree to the cessation of that joint and survivor benefit must be obtained prior to the payment of a phased retirement benefit. The PBSR specifies the form and content for the consent.