Section 12: Survivor and Child Benefits
This is a general explanation of survivor and child benefits. When these benefits become payable, we will provide more specific information to your survivor or executor.
To ensure that there is no delay in the payment of benefits to your dependants, they and the representatives of your estate should know the contents of this section.
When Death Occurs
In the event of death, the Superannuation Sector should be notified immediately and the death certificate or the certificate issued by the funeral director showing the date of death should be submitted. Other departments issuing payments should also be notified since a separate notice is required for each plan. If the documents mentioned in Section 2 were sent previously, the death certificate and confirmation of your address is usually all that is required, unless there has been a change in your marital status.
Since superannuation pensions are payable only to the end of the month of death, any cheques not negotiated that cover a period after the month of death should be returned to the Superannuation Sector.
Where a plan member has disappeared and is thought to be dead, survivor benefits may be payable. In such a situation, Client and Employer Advisory Services should be contacted.
Benefits - Supplementary Death Benefit
For Supplementary Death Benefit participants, once evidence of death is received and a claim form (if applicable) is completed, the Supplementary Death Benefit will be paid to the validly named beneficiary or, if no beneficiary is named or the beneficiary had died previously, to the pensioner's estate. However, as explained in Section 11, this benefit will be paid to your widow if you were a male participant in the plan prior to December 20, 1975, were married prior to that date and did not name a beneficiary.
Benefits - Survivor's Pension
A survivor's pension is ordinarily one-half of the plan member's unreduced pension (in other words, one-half of the member's pension before any reduction related to CPP/QPP or related to early retirement is applied). The formula for calculating a monthly survivor pension is one percent for each year of pensionable service credit (maximum 35 years) multiplied by the plan member's average annual salary over the best five consecutive years, divided by 12. Average salary is calculated over a six-year period if the plan member retired prior to June 17, 1999.
For example, the survivor pension where the plan member had 25 years of pensionable service credit and an average salary of $36,000 would be:
1% X 25 yrs X $36,000 = $750 per month
12 months
Benefits payable for periods of part-time service are adjusted based on the plan member's assigned hours of work as compared to the full-time hours of the position. In addition, if your survivor received a lump sum transfer of funds under the Pension Benefits Division Act and also qualifies for survivor benefits, no benefits will be payable for the period covered by the division of pension benefits.
Conditions Affecting Payment
Your spouse will normally be entitled to survivor benefits if you were married before you retired from the Public Service.
If you marry after retirement, an optional form of survivor benefit coverage for your spouse is available, with three levels of coverage to choose from. To obtain coverage, you must submit a formal option within one year from the date of your marriage or from the date your pension commences, if later. Your future pension payments will be reduced commencing the second month following your option and a survivor benefit will be payable after your death if you predecease your spouse. You can request estimates of the three levels of spousal benefits available and the adjustment to your monthly pension that corresponds to each level of coverage. Consult Client and Employer Advisory Services for more details. Note: If the marriage was preceded by a common-law relationship starting prior to retirement, regular survivor benefits may be available (see "Common- Law and Same-Sex Relationships" below).
As a female plan member, your husband will not be eligible for a surviving spouse's allowance if you ceased to be employed in the Public Service and a contributor under the Public Service Superannuation Act before December 20, 1975. Prior to that date, female plan members contributed to the plan at a lower rate. However, a survivor benefit would be payable if you opted to receive a reduced pension, as described in the preceding paragraph, before February 18, 1995. For more information on this subject, please contact Client and Employer Advisory Services.
If the plan member's death occurs within one year of marriage, the surviving spouse is not entitled to a pension unless it can be shown that at the time of marriage the plan member could have reasonably expected to live for at least one year. If the plan member could not have expected to live at least one year but the couple had a prior common-law relationship, survivor benefits may be payable on that basis (see "Common-Law and Same-Sex Relationships" below).
Common-Law and Same-Sex Relationships
A survivor's pension may be paid to a person who was a common-law or same-sex partner of the plan member. In order to be considered the plan member's survivor the person must have lived with the plan member in a relationship of a conjugal nature for at least one year immediately prior to his or her death. In addition, the relationship had to start prior to the plan member's retirement and continue without interruption until the plan member's death.
A person making a claim for benefits must submit evidence in the form of sworn statements and supporting documentation such as letters, bills, receipts, rental agreements, leases, government records, etc., demonstrating that he or she lived with the plan member in a conjugal relationship for the required period of time. Any statements or other evidence that the plan member may have submitted is also taken into account. Further information concerning eligibility and the type of documentation required to establish entitlement to survivor benefits in these circumstances is available from Client and Employer Advisory Services.
Marital Separations
Where there has been a marital separation for any length of time immediately before the plan member's death, the surviving spouse will still be entitled to survivor benefits unless the spouse cannot be located or waives entitlement to benefits (see "Waiver of Survivor Entitlement" below). In all cases of divorce, the former spouse is not eligible for survivor benefits upon the death of the plan member.
Apportionment of Benefits
The survivor benefit will be apportioned where a valid claim is made both by a legal spouse who was separated from the plan member and by a common-law or same-sex partner. The portion payable to each survivor is determined based on the length of each person's cohabitation with the plan member.
NOTE: Because circumstances in the above situations may change, no decision about the payment of survivor benefits will be made prior to your death. Although you cannot choose who is to receive or not receive survivor benefits, you may wish to provide a statement regarding your marital situation. If you require assistance, please contact Client and Employer Advisory Services. Any information submitted is kept in strict confidence.
Waiver of Survivor Entitlement
A survivor may waive his or her entitlement to an allowance if the waiver will result in payment of a minimum benefit or increase the amount of a child's or student's allowance. The waiver must be completed not later than three months from the date notice of the entitlement is sent to the survivor. The minimum benefit is explained in section 13.
Benefits - Children's Allowances
A deceased plan member's child who is less than 18 years old is usually eligible for a monthly child's allowance. Where a child was born, adopted or becomes a stepchild after retirement, the child's allowance is not normally payable.
The allowance is payable to the person who has custody of the child, usually the surviving spouse or partner. The amount is one-fifth of the survivor's pension. Where there is no survivor, or where the survivor dies or is not entitled to an allowance, the child's allowance is paid at twice the rate described above. Where both parents were plan members and both have died, the child may be entitled to a child's allowance in respect of each parent's participation in the plan.
The total allowance payable cannot exceed four-fifths of the basic survivor's pension or, where there is no eligible survivor, double that amount. Where there are more than four children, the total allowance will be apportioned among all the eligible children.
Benefits - Student Allowances
Student allowances may be payable to a deceased plan member's children who are between the ages of 18 and 25, and enrolled in an accredited full-time educational program since attaining age 18 or since the date of the plan member's death, whichever is later.
The student must apply annually for the allowance. An application form is mailed out each August to those students under 25 who received a pension the previous year. The application forms are also available from Client and Employer Advisory Services. Student allowances are paid directly to the student and are subject to the same conditions as children's allowances. A break in attendance may disqualify the student from receiving further payment, depending upon the length of the break.
Supplementary Benefits
Under Part III of the Public Service Superannuation Act, everyone receiving a survivor's pension, a child's allowance, or a student allowance receives automatic annual increases to help offset increases in the cost of living (please refer to Section 5).
Additional Income
Superannuation benefits paid to a survivor or child are not affected by employment in the federal Public Service or elsewhere, or by receipt of a pension under the Canada or Quebec Pension Plan.
Medical Insurance Plans
Coverage under provincial medical insurance plans, the Public Service Health Care Plan and the Pensioners' Dental Services Plan ceases on the death of the plan member.
Written application must be made by the plan member's survivor and/or children if they wish to continue coverage under these plans. Your executor should contact Client and Employer Advisory Services in this regard.
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