Death After Retirement
Losing a loved one is never easy, but we’re here to help when it happens. In this section, we explain what happens with your pension when you or your pension partner pass away after retirement.
The following information applies if you’re the pension partner, beneficiary, or if you’re the personal representative.
Important steps after the death of a retired PSPP member or pension partner:
- Contact us as soon as either the member or pension partner passes away. We’ll help guide you through the potential changes to the pension and the process of applying for any funds that might be paid out by the Plan.
- Contact the Canada Pension Plan (CPP) to discuss potential death and survivor benefits.
- Contact insurance company(ies), if applicable.
- Consider consulting an estate lawyer to help manage all the legalities.
Survivor Benefits
The benefits payable to you, the surviving spouse or partner, or chosen beneficiary(ies) in the event of a death depend on the pension option chosen at retirement.
Joint Lifetime Pensions
A Joint Lifetime pension is payable for the life of a member. When a member passes away, the joint lifetime pension will then be paid to the surviving spouse or pension partner for the rest of their life.
The guaranteed term for a Joint Lifetime pension is only payable if both the member and pension partner pass away in the first five years of retirement. Any remaining time left within the first five years will then be paid to the named beneficiaries or estate until the end of the guaranteed term.
| Pension Option Name | Member Pension Payment Duration | Survivor Pension Duration | Reduction on Death of Member or Pension Partner | Guaranteed Term | |
|---|---|---|---|---|---|
| Joint Lifetime Guaranteed at Least 5 Years | Lifetime | For survivor's lifetime | No reduction | 5 years from pension start date | |
| Before January 1, 2021 | Joint Lifetime Reduced by 1/3 Guaranteed at Least 5 Years | Lifetime | For survivor's lifetime | Reduced by 1/3 upon first death. Pension will be 2/3 of the original amount | 5 years from pension start date |
| After December 31, 2020 | Joint Lifetime Reduced by 1/3 Guaranteed at Least 5 Years | Lifetime | For survivor's lifetime | Reduced 1/3 only upon death of member | 5 years from pension start date |
Joint Lifetime – Historical Pension Options
Depending on when you retired, you may have selected a pension option that is not currently being offered:
| Pension Option | Survivor Pension Duration | Reduction at Death | Benefit to Beneficiary(ies) or Estate |
|---|---|---|---|
| Joint Lifetime(not reduced, no guarantee) | Paid for survivor's lifetime | No reduction at death of either member or pension partner | None |
| Joint Lifetime Reduced by 1/3 (no guarantee) | Paid for survivor's lifetime | At death of member or pension partner, survivor's pension reduced by 1/3Remaining pension paid will be 2/3 of the original amount | None |
| Joint Lifetime Reduced by 1/2(no guarantee) | Paid for survivor's lifetime | At death of member or pension partner, survivor's pension reduced by 1/2Remaining pension paid will be 1/2 of the original amount | None |
Single Lifetime Pensions
If you didn’t have a pension partner at the time of retirement, or if your pension partner chose to complete a waiver, you would have chosen one of the Single Lifetime pension options. The Single Lifetime pension options are payable for the member’s lifetime only.
The guaranteed term for a Single Lifetime pension means if the member passes away before the end of the guarantee period, the pension will be payable to the named beneficiary(ies) or estate until the end of that guarantee period.
| Pension Option Name | Member Pension Payment Duration |
|---|---|
| Single Lifetime | None |
| Single Lifetime Guaranteed At Least 5 Years | Benefit paid for remainder of guaranteed term if member passes away within 5 years of pension start date |
| Single Lifetime Guaranteed At Least 10 Years | Benefit paid for remainder of guaranteed term if member passes away within 10 years of pension start date |
| Single Lifetime Guaranteed At Least 15 Years | Benefit paid for remainder of guaranteed term if member passes away within 15 years of pension start date |
Single Lifetime – Historical Pension Options
Depending on when you retired, you may have selected a pension option that is not currently being offered:
Single Lifetime Guaranteed At Least 20 Years (Guaranteed 20-year term)
Under this option, your pension is paid to you for as long as you live. If you die before the end of the guaranteed period, the pension will pay the named beneficiaries or estate until the end of that 20-year term.
Pensions with Coordination
If you chose the coordination option, your pension will change after you pass away. The changes listed below only refer to the coordination amount. There can be other decreases if you chose a pension option with a reduced survivor benefit, such as Joint Lifetime Reduced by 1/3 Guaranteed at Least 5 years.
| If You Started Your Pension Before 2004 | If You Started Your Pension After 2003 | If You Started Your Pension After December 31, 2020 |
|---|---|---|
| Coordination will continue for as long as a pension is being paid to you, your pension partner or your beneficiary(ies).If you die before age 65, the increase to the monthly payment will continue until the point at which you would have turned 65. Any amount paid to your pension partner or beneficiary(ies) will be reduced on the date you would have reached 65.If you die after age 65, the reduction in the monthly payment will continue for the duration of the survivor's or beneficiaries' pension benefit. | Coordination will continue as long as you are alive.If you die before age 65, the increase to the monthly payment will stop. Any amount paid to your pension partner or beneficiary(ies) reverts to your original, uncoordinated pension amount. The pension will not be reduced on the date you would have reached 65.If you die after age 65, the reduction in the monthly payment will stop and your pension partner or beneficiary(ies) will receive a survivor pension based on the original, uncoordinated pension amount. | Coordination will no longer be available. |
Beneficiary Information
Retired members and/or their representatives are responsible to keep their beneficiary information up to date on Your Pension Profile. This is especially important upon a retired members death as pension benefits payable to beneficiaries after your death will be made according to the most recent information we have on file.
It is for this reason that you or your representative should review your contact and beneficiary(ies) information yearly.
You can also use your Will to tell us who your beneficiary is, but it must refer to either PSPP or your employment-based pension plan.
Beneficiaries will have the option of receiving monthly payments until the end of the guaranteed term, or they can receive a lump sum payout of the commuted value of that amount.
If you do not name any beneficiaries for your PSPP pension, either with the Plan or in your Will, any funds will be paid as a lump sum to your estate.
For more information on beneficiaries, click here.