Death
Defined benefit 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 death benefit is at least equal to the value of the benefits accumulated to the member since 1 January 1990 .
For credited service under the plan before 1 January 1990, the amount of the death benefit must be at least equal to the member contributions, additional voluntary contributions (if any) plus accrued interest up to the date on which the benefit is paid. The plan is not required to include the employer contributions.
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 under 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 pension reduced upon first death, the member's pension will be reduced.
If you have questions
You should contact your plan's administrator.