A Reference Guide - Old Age Security and Canada Pension Plan

Canada Pension Plan

The Benefits

Survivor Benefits

Survivor's pension

To qualify: The spouse or common-law partner of a deceased contributor may be eligible for a survivor's pension if the deceased contributed to the CPP during at least one third of the calendar years in his or her contributory period. A minimum of three years of CPP contributions is needed. If the contributory period was 30 years or longer, 10 years of contributions are required.

Amount of benefit: The amount of the monthly payment depends on:

• whether the survivor is receiving a CPP retirement pension or disability benefit (see "Combining CPP Benefits");
  
  
• how old the survivor is at the time of the contributor's death;
  
  
• how much the deceased contributor contributed; and
  
  
• in some cases, whether or not the survivor has dependent children or was disabled at the time of the contributor's death.
  
  

The amount of the pension paid to a survivor who was 65 or over at the time of the contributor's death is equal to 60 percent of the retirement pension that the deceased contributor could have received at 65. If the contributor died before turning 65, a retirement pension is calculated as if he or she had turned 65 in the month of death.

The amount paid to a survivor under 65 is composed of two parts-a flat-rate component and an earnings-related portion. The earnings-related portion of the survivor's pension is equal to 37.5 percent of the actual or calculated retirement pension of the deceased contributor. The benefit is recalculated when the survivor turns 65.

If the survivor is under 45, is not disabled (according to CPP legislation) and has no dependent children, the amount of the survivor's pension is reduced by 1/120 for each month the survivor is under 45 at the time of the contributor's death.

Survivors under 35 who are not disabled (according to CPP legislation) and have no dependent children are not eligible to receive a survivor's pension until they turn 65 or become disabled.

Only one survivor's pension can be paid at any given time, even if the survivor has survived more than one spouse or common-law partner. In such a case, the highest of the applicable benefits is paid.

Benefits for children of deceased contributors

To qualify: A benefit may be paid for the dependent child of a deceased contributor if the application is made in writing and if the contributor made contributions for the minimum qualifying period for a survivor benefit.

To be eligible, the child must be:

• under 18, or
  
  
• between the ages of 18 and 25 and in attendance full-time at a recognized educational institution. Benefits are suspended if the child is no longer a full-time student, but may be reinstated if he or she goes back to school full time.
  
  

Payment of benefits: For 2008, the monthly amount for a child's benefit is $208.77.

Once the application is approved, payment begins either:

• the month following the contributor's death,
  
  
• the month following the child's birth or adoption, or
  
  
• the month following the 18- to 25-year-old dependant started attending school full time.
  
  

Payment stops if the child no longer meets the eligibility conditions described above, or if the child dies.

Children may receive up to two children's benefits if both parents have made the a survivor's pension until they turn 65 or become disabled.

Only one survivor's pension can be paid at any given time, even if the survivor has survived more than one spouse or common-law partner. In such a case, the highest of the applicable benefits is paid.

Benefits for children of deceased contributors

To qualify: A benefit may be paid for the dependent child of a deceased contributor if the application is made in writing and if the contributor made contributions for the minimum qualifying period for a survivor benefit.

To be eligible, the child must be:

• under 18, or
• between the ages of 18 and 25 and in attendance full-time at a recognized educational institution. Benefits are suspended if the child is no longer a full-time student, but may be reinstated if he or she goes back to school full time.

Payment of benefits: For 2008, the monthly amount for a child's benefit is $208.77.

Once the application is approved, payment begins either:

• the month following the contributor's death;
• the month following the child's birth or adoption; or
• the month following the 18- to 25-year-old dependant started attending school full time.

Payment stops if the child no longer meets the eligibility conditions described above, or if the child dies.

Children may receive up to two children's benefits if both parents have made the required contributions, and if:

• both parents receive CPP disability benefits, or are deceased, or
  
  
• one parent is deceased and the other receives a CPP disability benefit.
  
  

Death benefit

To qualify: A death benefit may be paid to the estate of a deceased contributor if contributions to the CPP were made for the minimum qualifying period. This minimum period is the same as for a survivor's pension. When there is no will or estate, the death benefit is paid to the person responsible for paying the funeral expenses, the surviving spouse or common-law partner, or the next of kin, in that order.

Amount of benefit: The death benefit is a lump-sum payment equal to six times the monthly retirement pension of the deceased contributor, up to a maximum of $2,500. If the deceased was not receiving a CPP pension, the amount is calculated as though he or she were 65 years of age at the time of death.

Pages:  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Publications