- What if a plan member dies before retirement?
- How is “principal beneficiary” defined?
- How is “spouse” defined”?
- How is “cohabitating partner” defined?
- What if the principal beneficiary dies leaving dependent children?
- What if a plan member dies after retirement?
- Are there any other provisions which protect the interests of the plan member in the event of death?
- What documentation is required for a spouse or dependent children to apply for survivor benefits?
- What documentation is required for a cohabitating partner to apply for survivor benefits?
1. What if a plan member dies before retirement?
If a plan member dies before accumulating at least five years of pensionable service, a refund of contributions and interest will be paid to the estate. If a plan member has accumulated at least five years of pensionable service, and dies leaving no principal beneficiary the greater of:
- the commuted value of the plan member’s pension entitlement at date of death, and
- the plan member’s contributions and interest will be paid to the estate.
If a plan member with a principal beneficiary dies after accumulating five years of pensionable service, but before the payment of pension has commenced, the principal beneficiary will have the following options:
- receive a lifetime pension equal to 60% of the benefit earned to the date of death, or
- receive a lump sum payment which is the greater of:
- 100% of the commuted value of the plan member’s pension entitlement at date of death; and
- the commuted value of the 60% survivor benefit as determined at date of death.
The 60% survivor benefit is payable to the principal beneficiary for life and will commence on the first day of the month following the month of the plan member’s death.
NOTE: GROUP INSURANCE BENEFITS ARE FORFEITED WHEN A SURVIVOR ELECTS TO RECEIVE A BENEFIT IN THE FORM OF A COMMUTED VALUE
2. How is “principal beneficiary” defined?
The Public Service Pensions Act, 1991 defines “principal beneficiary” as the spouse of an active plan member, inactive plan member or retired plan member, or where an active plan member, inactive plan member or retired plan member has a cohabitating partner, his or her cohabitating partner.
3. How is “spouse” defined”?
The Public Service Pensions Act, 1991 defines “spouse” as a person who
- is married to an active plan member, inactive plan member or retired plan member,
- is married to an active plan member, inactive plan member or retired plan member by a marriage that is voidable and has not been voided by a judgment of nullity, or
- has gone through a form of a marriage with an active plan member, inactive plan member or retired plan member, in good faith, that is void and is cohabitating or has cohabitated with an active plan member, inactive plan member or retired plan member within the preceding year.
4. How is “cohabitating partner” defined?
In accordance with the Public Service Pensions Act, 1991, “cohabitating partner”,
- in relation to an active plan member, inactive plan member or retired plan member who has a spouse, means a person who is not the spouse who has cohabitated continuously with the active plan member, inactive plan member or retired plan member in a conjugal relationship for not less than three years,
- in relation to an active plan member, inactive plan member or retired plan member who does not have a spouse, means a person who has cohabitated continuously with the active plan member, inactive plan member or retired plan member, in a conjugal relationship for not less than one year,
and is cohabitating or has cohabitated with the active plan member, inactive plan member or retired plan member within the preceding year.
5. What if the principal beneficiary dies leaving dependent children?
Upon the death of a principal beneficiary who is in receipt of the 60% survivor benefit under the PSPP, the benefit will continue to be paid to (or for the benefit of ) surviving children. As described above, benefits will continue to be paid until the youngest child reaches age eighteen or, if a child is in full-time attendance at a recognized school or post-secondary institution, benefits will continue until the course of study is completed or the child reaches age twenty-four, whichever occurs first.
6. What if a plan member dies after retirement?
Upon the death of a pensioner, the principal beneficiary or, in the absence of a principal beneficiary, the dependent children will receive a survivor benefit equal to 60% of the pension. Unless it has already been applied to the plan member’s pension, the CPP reduction will be applied, on the date of the plan member’s 65th birthday, to the survivor benefit. In the case of a surviving spouse the benefit is payable for life; for dependent children the benefit is payable until the youngest child reaches age eighteen or, if a child is in full-time attendance at a recognized school or post-secondary institution, until the course of study is completed or the child reaches age twenty-four, whichever occurs first.
7. Are there any other provisions which protect the interests of the plan member in the event of death?
Yes.
If the plan member and/or survivors should die before the total of benefits paid out is equal to the plan member’s contributions plus interest, the difference between the amount of contributions with interest and the total benefits paid will be calculated and paid to the Estate.
8. What documentation is required for a spouse or dependent children to apply for survivor benefits?
- Application for survivor benefits
- Birth certificate of spouse/dependent children
- Social insurance number(s) of spouse/dependent children
- Marriage certificate of plan member and spouse
- Death certificate of the plan member
9. What documentation is required for a cohabitating partner to apply for survivor benefits?
- supporting sworn affidavit of a third party who knows the spouse and the member or pensioner during the period that they have lived together as spouses. The supporting sworn affidavit should state how long the third party has known the spouse and the member or pensioner,
- a sworn affidavit from the applicant providing the same information as the above affidavit,
And any one of the following:
- copies of deeds or leases showing any jointly held or leased property or liabilities, for example mortgages, bank accounts, etc.,
- any evidence that the spouse and the member or pensioner have named each other as beneficiary of RRSP, life insurance policies, pensions or other investments,
- a copy of the member’s Will,
- copies of birth certificates or formal adoption papers for children of the common law union,
- copies of the previous three years’ tax returns of the member and the spouse