Survivor Benefits
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 the member has at least 5 years credited service but no principal beneficiary the estate will receive the greater of the commuted value of the pension benefit or a refund of contributions and interest.
If the member dies after accumulating five years of pensionable service, but before the payment of pension has commenced, the principal beneficiary (or designated beneficiary) will have the following options:
- receive a lifetime pension equal to 60% of the benefit earned to the date of death, 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, or
- receive a lump sum payment of the greater 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.
NOTE: GROUP INSURANCE BENEFITS ARE FORFEITED WHEN A SURVIVOR ELECTS TO RECEIVE A BENEFIT IN THE FORM OF A COMMUTED VALUE
How is "Principal Beneficiary" defined?
The Teachers 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.
How is "spouse" defined?
The Teachers 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.
How is "cohabitating partner" defined?
In accordance with the Teachers 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 cohabited with the active plan member, inactive plan member or retired plan member within the preceding year.
What if the principal beneficiary dies leaving (the plan member's) dependent children?
Upon the death of a principal beneficiary who is in receipt of the 60% survivor benefit under the TPP, the benefit will continue to be paid to (or for the benefit of ) the plan member’s 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.
What is a designated beneficiary?
A plan member, pensioner or deferred pensioner who does not have a principal beneficiary, (or a child entitled to a survivor benefit) may designate a beneficiary (infirmed child, parent, grandparent, brother, sister or grandchild) who is dependent on the plan member for support in accordance with Section 27(5)(a)(b) and (c) of the Teachers’ Pensions Act. Where a plan member dies (before pension is in pay) the designated beneficiary may be entitled to either a lump sum payment (commuted value) or a lifetime pension. An “Application for Designation of Beneficiary” may be obtained by contacting The Pensions Administration Division.
What if a plan member dies after retirement?
Upon the death of a pensioner, the principal/designated beneficiary or, in the absence of a principal beneficiary, the dependent children will receive a survivor benefit equal to 60% of the pension. Unless already removed, the bridge benefit will cease to be paid immediately. In the case of a principal/designated beneficiary 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.
Is there any other provision which protects 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
What documentation is required for a spouse or dependent children to apply for survivor benefits?
- Application for Dependents Pension
- 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
- Verification of full-time attendance in school if child over age18
- Proof of legal guardianship if child under age 18
What documentation is required for a cohabitating partner to apply for survivor benefits?
- Application for survivor benefits
- Birth certificate of cohabitating partner
- Social insurance number of cohabitating partner
- Death certificate of the plan member
- A supporting sworn affidavit of a third party clearly stating how long the third party knew the partner and the teacher/pensioner during the relationship.
- A sworn affidavit from the applicant clearly stating the length of the relationship
Plus 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 cohabitating partner and plan member have named each other as beneficiary of RSP’s, health insurance policies, life insurance policies, pensions or other investments
- A copy of the plan member's will
- Copies of the previous three year's tax returns of the plan member and cohabitating partner
- Copies of birth certificates or formal adoption papers for children of the cohabitating partner and plan member