Canada Pension Plan
How much a family can receives from Canada Pension Plan depends on the average lifetime earnings of the deceased, the age of the survivor, and the programs the survivor is currently accessing. That means the higher the earnings, the higher their benefits but contingent on the age and programs currently being used. Listed below are the most typical situations.
- The death benefit will be six-times the deceased’s monthly CPP benefit to a maximum of $2,500.00 (at current rates).
- The surviving spouse can currently receive a Survivor’s Pension of 60% of the CPP benefits if they are over the age of 65 and 37.5% if under the age of 65.
- If the deceased and the survivor were both receiving Canada Pension benefit cheques, the survivor is entitled to receive a portion of the deceased’s Pension, but the payments will be calculated on a case by case basis. Applications can be found on-line at: www.servicecanada.gc.ca/cgibin/search/eforms/index.cgi?app=prfl&frm=isp1200&ln=eng
- Or by calling 1-800 277 1919
Special One-Time Death Benefit
As stated, a one-time payment of six-times the monthly CPP benefit up to a $2,500.00 is payable to the deceased Estate if there is a will and the executor is the applicant. The cheque is sent to the executor who then deposits it to the deceased bank account. If no will, then paid to the person responsible for funeral expenses.
The benefit is taxed to the estate as income when received by the estate, or taxed as income to an individual who applies for the benefit.
Who Can Get Survivors Benefits?
- A widow or widower can currently receive 37.5 % of the full benefits at ages 45 – 65 plus an additional $142.00 approximately monthly, although this figure changes over time. They can receive 60% of the benefit if they are over the age of 65 and not receiving CPP benefits. Benefits are only paid to married spouses and/or common-law spouses. Divorced spouses are not eligible.
- Unmarried children are entitled to a surviving child’s benefit up to age 18 (or age 25 if they are attending a post secondary institution taking at least 3 classes a semester). The current monthly benefit is $218.50 which is paid to the legal guardian of the child up to the age of 18. Then it is paid directly to the recipient