Death
Defined contribution pension plan
Death of the member before his or her retirement
The member's spouse will receive a death benefit from the pension plan. If he or she had renounced the death benefit, it will be paid to the designated beneficiary or to the deceased member's heirs.
Statement of benefits
The plan administrator has 60 days following the date on which the administrator was notified of the death to send a statement of benefits to the member's spouse or to the person who is entitled to the death benefit.
Amount of the death benefit
The amount of the death benefit must be equal to the sums credited to the member's account (member contributions, employer contributions, and additional voluntary contributions, all with interest). However, the plan is not required to include the employer contributions paid before 1 January 1990 with interest.
Terms of payment
The death benefit is paid in a lump sum. However, if the benefit is payable to the surviving spouse, the plan may provide that it be paid in the form of a pension.
Death of the member after his or her retirement
If the member died while he or she was receiving a pension under the plan, the surviving spouse is entitled to a pension for life. This is a joint and survivor pension. It must be equal to at least 60% of the pension that the deceased member was receiving, unless the surviving spouse had agreed to receive a smaller amount. To qualify for the pension, a person must have been the deceased member's spouse when the member retired or, if the plan allows, when the member died.
If the surviving spouse renounced his or her entitlement, the sums payable following the death of the member will depend on the normal pension provided for by the plan and the options that the member had chosen.
Death of the member's spouse
If the member's spouse dies before the member, the member's pension will not be increased. However, if the member had opted for a joint and survivor's pension reduced upon first death, the member's pension will be reduced.
If you have questions
You should contact your plan's administrator.