Understanding Changes to the Canadian Pension Plan Death Benefit & Survivor Pension
In December 2017 the Canadian government released a suite of changes to the Canadian Pension Plan. Among these changes were changes to the way the Death Benefit is calculated and the eligibility criteria for the Survivor Pension. These changes do not come into effect until 2019. Below the current rules for both the Death Benefit and the Survivor Pension are outlined and the changes explained.
Current Death Benefit Calculation
What Is It?
The Canadian Pension Plan Death Benefit is a one time, lump sum payment to the estate of the deceased Canada Pension Plan contributor.
Eligibility
Only persons who made contributions to the Canada Pension Plan are eligible for the Canada Pension Plan Death Benefit. The Canadian government further stipulates that they must have made contributions for the lesser of one-third of the calendar years in their CPP contribution period but no less than 3 calendar years or 10 years. Canada also has international social security agreements with countries that offer similar pension programs. This allows those that have lived or worked outside of Canada to potentially satisfy the CPP contribution requirements. The social security agreement may also make you eligible for pension benefits in another country.
How Much Will I Receive?
The amount you are eligible to receive under the CPP Death Benefit will vary on a case by case basis because it is dependent on how long the deceased contributed, if at all, to the Canada Pension Plan. In 2016 on average per case the Canadian government paid approximately $2,300 to a maximum of $2,500 for the death benefit.
You can approximate the amount of the death benefit by calculating the amount that the CPP retirement pension is or would have been if the deceased had been 65 years of age at the time of death. The death benefit is usually equal to six months of the person’s retirement pension up to the maximum of $2,500.
Changes to Death Benefit Calculation
In 2019, upon a CPP contributor’s death, a lump sum payment of $2,500 to the estate will be guaranteed instead of being calculated based on the deceased’s earnings.
Current Survivor Pension Eligibility Criteria
What Is It?
The Canada Pension Plan Survivor’s Pension is paid to the person who, at the time of death, is the legal spouse or common-law partner of the deceased contributor.
Eligibility
The Survivor Pension amount depends on several criteria. Those being the surviving spouse/common-law partner’s age, whether you are also receiving a CPP disability benefit or retirement pension, and how much and for how long the deceased contributed to CPP.
How much will I Receive?
The Canadian government first calculates the amount the CPP retirement pension is or would have been if the deceased had been age 65 at the time of their death. They then calculate based on the survivor’s age at the time of the contributor’s death.
- Survivors age 65 or more will receive 60% of the contributor’s retirement pension, if they are not receiving other CPP benefits
- Survivors 45-64 will receive a flat rate portion
- Survivors age 45-64, under 45 and are disabled according to CPP legislation, and or are raising dependent children will receive a flat rate portion plus 37.5% of the contributor’s retirement pension if they are not receiving other CPP benefits
- Survivors under the age of 45 and are not disabled and not raising dependent children will receive a flat rate portion minus 1/120 for each month the survivor is under the age of 45 at the time of the contributor’s death
- Survivors under the age of 35 who are not disabled or raising dependent children will not be paid until they reach 65 years of age or become disabled
Changes to Survivor Pension Eligibility Criteria
In 2019, upon a CPP contributor’s death, a Survivor Pension will be paid out to all surviving spouses regardless of the deceased age, dependent children or disability. Those that have been previously denied a Survivor Pension due to their age will be eligible to re-apply for the pension in 2019. Those applying for the pension that are under the age of 45 will no longer see a reduction in their amount. Those currently receiving a Survivor Pension, whose pension was reduced, will receive an automatic bump in their payment amounts.
If you are getting Odsp will they deduct the survivors pension
It is to my knowledge that the Survivor’s Pension is classified as income and could cause a reduction in ODSP benefits.
To know for sure you should contact Ontario Works because they will be able to tell you if the Survivor’s Pension will affect ODSP Benefits and even perhaps by how much.
If a spouse is non canadian citizen but the deceased has contributed the full working life what benefits do the spouse receive
As far as I know your legal spouse irregardless of citizenship status is entitled to receive the death benefit and a survivor’s pension as long as you meet the CPP contribution requirements.
To be sure I recommend calling the Canada Pension Plan at 1-800-277-9914 or visiting your local Service Canada branch as they are the best source for this information.
This is my situation, your benefit is the same as a Canadian citizens would be. I don’t even live in Canada.
If the Survivo’s Pension is clasissified as an income why is ODSP deduct all the amount , should we not be allow to keep the first $200 . Either way Survivor’s Pension should be classified as an “Income Expemtion” .
If the Survivo’s Pension is clasissified as an income why is ODSP deduct all the amount , should we not be allow to keep the first $200 . Either way Survivor’s Pension should be classified as an “Income Expemtion” .
My husband died 14 years ago. I was denied death benefit, ccp survivor and child benefit as our daughter was 13 then. He was a permanently disabled man on CCP disability benefits. I asked my MP for help, nothing came of it. All anyone said was “ he slipped between the cracks”, as he had CPP earnings for only 6 years and needed 7 to qualify. I am now 65, receiving my Old Age etc. and as it’s low, I am forced to work part time for the rest of my healthy days. I even asked Legal Aid back then and nothing. What a travesty in my opinion. Struggling nonstop for 14 years and nothing to show for it.🙄
My husband died when I was 36 he was 35, in 1996. I received around $170 a month until last Jan. 2019when it was bumped up to $275. So I assume it was the flat rate plus a bit of his small pension. I am wondering when I turn 65 in 2025, will they take away the flat rate and I will be left with almost nothing as his pension was so small?
When the survivor is under the age of 65 a flat rate portion is paid to the survivor along with 37.5% of the deceased pension until the survivor reaches the age of 65 or starts collecting their own Canada Pension. When the survivor reaches 65 the survivor’s pension is calculated to be 60% of the deceased. The maximum amount you could receive with the survivor’s pension and your retirement pension will only add up to the maximum retirement pension. At age 60 you can contact the Canada Pension Plan to get an estimate of what your pension will be at age 65 but that amount will be recalculated at age 65. More information can be found here https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-survivor-pension.html or the Canada Pension Plan can be reached at 1-800-277-9914.
My father was 73 years old and receiving OAS and CPP my parents have been separated for 28 years and I’ve been looking after him for the last 2 years he was living with me…..who applies for the survivors benefits
Hi Vicki,
The survivor’s pension is only payable to the legal spouse or commmon law partner of the deceased. If your mother is still currently legally married to your father, she would probably qualify and the application would be made in her name.
You can find more information out about qualifying for the survivor’s pension here: https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-survivor-pension.html
In terms of the Death Benefit the executor of the estate or the person who pays for funeral expenses would apply for that benefit. Here is more information on the Death Benefit https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp-death-benefit.html