Survivor benefits

If you had a spouse when your pension started, they will be your eligible spouse provided:

• You and your spouse were, at the time your pension started, married or in a common-law relationship and not living separate and apart as defined by applicable legislation in your jurisdiction of employment, and,
• You and your eligible spouse did not waive the survivor pension benefit at the time of your retirement, or after you started your pension as part of a separation. In order to be effective, the waiver must be done in accordance with the conditions set out by applicable legislation in your jurisdiction of employment. Contact the Plan for information on the spousal waiver that applies to your jurisdiction of employment.

If you did not have an eligible spouse when you started your pension, and you subsequently have a spouse at the time of your death, that spouse would be your eligible spouse, provided they meet the definition of spouse under applicable legislation.

If you do not have an eligible spouse, but you do have an eligible child at the time of your death, a children’s pension will be paid to them. See Other survivor benefits if you die with no spouse to learn more.

The definition of ‘spouse’ differs by jurisdiction across Canada. It is important that you understand the definition applicable to you. You can find the applicable definition that applies based on your jurisdiction of employment when you retired here: Pension policies by jurisdiction.

The pre-retirement death benefit is paid as a monthly pension directly to your eligible spouse's bank account via direct deposit. This pension is based on the actuarial equivalent value of the pension you earned during your membership in the Plan. Your spouse will begin collecting their pension effective the first day of the month following your death, and will receive it for the rest of their life. The immediate monthly pension is subject to any increases which may be granted each year due to inflation protection.

Rather than an immediate pension, your eligible spouse may opt to collect a pension starting at age 65. This deferred survivor pension is calculated the same way as the immediate pension. Payments begin when your spouse turns 65 and continue until your eligible spouse's death. This deferred pension is also subject to increases each year due to inflation protection.

In the event that your eligible spouse dies before starting the deferred survivor pension, the designated beneficiary of your eligible spouse will receive the commuted value of the survivor pension in one payment, called the beneficiary payout. (The commuted value is an actuarial calculation of what your future pension is worth today in a lump sum.) If your eligible spouse does not stipulate a designated beneficiary, any entitlement will go to his or her estate.

Your eligible spouse may choose to receive a lump sum payment rather than collecting a pension. This benefit is the commuted value of the benefit you earned during your membership in the Plan. (The commuted value is an actuarial calculation of what your future pension is worth today in a lump sum). It can be taken as a cash payout that is taxable to your spouse. Your eligible spouse may choose instead to take the amount as a transfer into another eligible pension plan (if that plan allows) or into his or her RRSP or another retirement arrangement. Such transfers are tax exempt, subject to the approval of the Canada Revenue Agency and tax limits.

If your jurisdiction of employment is Quebec, other payment options may be available to your surviving spouse. Contact the Plan for details.

Your spouse's pension will continue until their death, at which point it will stop. There is, however, a possibility that your spouse's designated beneficiary will be eligible to receive a survivor benefit upon your spouse's death. If your spouse dies before 60 months’ worth of pension payments have been made, a payment of the difference between that amount and the amount your spouse received will be made to your spouse's beneficiary or estate.

If your jurisdiction of employment is Ontario or Nova Scotia and you do not have an eligible spouse, your eligible child or children will receive a children's pension upon your death. This benefit is equal to 50% of the pension you earned during your Plan membership. The pre-retirement death benefit paid to your designated beneficiaries or estate will be correspondingly reduced.

To be eligible for the children’s pension, your biological or adopted child must be dependent on you and either
a) under the age of 18, or
b) under the age of 25 and a full-time student, or
c) unable to support themselves due to a disability (and either became disabled before the age of 18 or before the age of 25 if they were a full-time student).

If you have two or more eligible children, they will share the children’s pension. Once one child no longer meets the definition, the balance of the children’s pension is re-divided equally among any remaining eligible children. In addition to the children's pension, your designated beneficiaries (or your estate if you have not named any designated beneficiaries) may receive a lump sum payment. This payment is equal to the commuted value of the pension you accumulated up to your death, minus the commuted value of the pension the eligible children are entitled to receive. The pre-retirement children's pension only applies to members whose jurisdiction of employment is Ontario or Nova Scotia. It does not apply in any other jurisdictions.

Your designated beneficiaries are the person (or persons) chosen by you to receive pre-retirement death benefits upon your death. By naming designated beneficiaries, a benefit will go to the person of your choice, rather than to your estate.

Your designated beneficiaries can be anyone you choose - a child or other relative, a family friend or associate. If you name more than one designated beneficiary, the benefit will be split among them in the manner dictated by you. (Please note that if you name more than one designated beneficiary, the percent share given to each must total 100%.)

Your designated beneficiaries (or if there are no designated beneficiaries, your estate) are eligible to receive a lump sum payment if you die before retiring. This payment is equal to the commuted value of the pension that you accumulated during your Plan membership.

If, when you die, you are entitled to receive excess contributions, they will be paid to the pre-retirement death benefit recipient (your eligible spouse or designated beneficiaries). Excess contributions are refunded when the total amount of the contributions you made during your membership (plus interest) exceeds 50% of the commuted value of your benefit.

Depending on your jurisdiction of employment, there may be different payout options for the excess contributions.

A change in marital status may have an effect on pre-retirement death benefit payouts. If you marry, separate or divorce, it is important to notify the Plan as soon as possible.

If you separate or divorce, the pension you earn may need to be included in the valuation and/or division of family property. Visit the Separation or Divorce page for more information.

Spousal Waiver

The CAAT Pension Plan considers your spouse to be the eligible spouse for the pre-retirement death benefit if they meet the definition of spouse in your jurisdiction of employment, and your spouse has not waived the pre-retirement death benefit in accordance with the conditions set out by applicable legislation.

If your spouse wishes to waive their rights to the pre-retirement survivor pension, the request must come directly from your spouse in accordance with the conditions set out by applicable legislation. Contact the Plan for the spousal waiver that applies to your jurisdiction of employment It is in the best interest of you and your spouse to receive independent legal and financial advice before making this decision.

Your spouse is defined as the person to whom you are married or that you are in a common-law relationship with, as defined by applicable legislation in your jurisdiction of employment. The definition of ‘spouse’ differs by jurisdiction across Canada. It is important that you understand the definition applicable to you.You can find the definition that applies based on your jurisdiction of employment here: Pension policies by jurisdiction.

The CAAT Pension Plan considers your spouse to be the eligible spouse for the pre-retirement death benefit if, on the date of your death:

• Your spouse meets the definition based on your jurisdiction of employment and is not living ‘separate and apart’ based on the applicable definition, and
• Your spouse has not waived pre-retirement death benefits. In order to be effective, the waiver must be done in accordance with conditions set out by applicable legislation. Contact the Plan for the spousal waiver that applies to your jurisdiction of employment.