Members > FAQ > Survivor Benefits

FAQ - Survivor benefits

When I die, what benefit is available to my family?

The Survivor benefit depends on whether you die before or after you retire, and on who the Survivor is.

Pre-retirement

If you die while you are employed and you are not vested - that is, you have less than 2 years of Pensionable Service or Plan membership - your contributions plus interest will be refunded to your Spouse, or to your designated Beneficiary or estate if you do not have a Spouse.

If you die while you are employed and you are vested, one of the following three situations will apply to you.

Situation 1 - I have an eligible Spouse

Your Spouse will receive the Commuted Value of your pension, or a lifetime pension based on the Commuted Value.

When your Spouse dies, any balance of 60 months of your lifetime pension that exceeds the total pension payments made will be paid to the beneficiary, if your Spouse designated one, or to your Spouse's estate (see 60 Months Pension Guarantee). This is the case even if you have eligible Children (those who are under age 18). However, eligible Children can receive this benefit if they were designated as Beneficiaries by your Spouse.

Situation 2 - I do not have an eligible Spouse, but I do have eligible Children

Your eligible Children will receive a Children's pension equal to 50% of your accrued lifetime pension. In addition, your designated Beneficiary or your estate will receive a payment of the Commuted Value of your pension, minus the Commuted Value of the Children's pension.

Situation 3 - I do not have either an Eligible Spouse or Eligible Children

The Commuted Value of your pension will be paid to your designated Beneficiary or your estate.

Post retirement

If you die after you retire, one of the following three situations will apply to you.

Situation 1 - I have an eligible Spouse

Your Spouse will receive a pension equal to 60% of your pension as of the date of death (unless you choose the 75% Spousal pension when you retire).

When your Spouse dies, your eligible Child (if you have one) will receive a Children's pension equal to the Spousal pension. If you have no eligible Children (those who are under age 18), any balance of 60 months of your lifetime pension that exceeds the total pension payments made will be paid to the beneficiary, if your Spouse designated one, or to your Spouse's estate (see 60 Months Pension Guarantee).

Situation 2 - I do not have an eligible Spouse, but I do have eligible Children

Your eligible Children will receive the Spousal pension (divided into equal shares). Children lose eligibility when they turn 18 - and when that happens, the shares will be redivided among any remaining children.

When your youngest eligible Child reaches age 18, he or she (or if he or she died before reaching age 18, the estate) will receive any balance of 60 months of your lifetime pension that exceeds the total pension payments made.

Situation 3 - I do not have either an eligible Spouse or eligible Children

Your beneficiary, if you designated one, or otherwise your estate, will receive any balance of 60 months of your lifetime pension that exceeds the total pension payments made.

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How do I designate a Beneficiary?

To designate a Beneficiary, complete a Pension Membership/Change of Information or Beneficiary form (available from your College's Human Resources department). Make sure you sign and date the form.

Who are my Beneficiaries and what benefits can they get from the CAAT Plan?

If you have an eligible Spouse, he or she is your Beneficiary. If you do not have a Spouse, you can designate a Beneficiary, if you have not already done so, by completing a Pension Membership Change of Information or Beneficiary form, available at your College.

When you retire, your pension will be paid to you for as long as you live. When you die, the survivor pension is paid to your Spouse for as long as your Spouse lives. Once your Spouse dies, if you have "eligible Children" (dependents who are under 18 years of age), they will continue to receive a survivor pension until they turn 18. This pension is equally divided among your eligible Children and is re-divided each time a Child turns 18.

In addition, after these pensions have stopped and if all the payments made to you, your Spouse and your Children total less than 60 times your original lifetime pension payment, the difference will be paid to the last Child to turn 18, the Beneficiary, if one has been designated or the Estate, if a Beneficiary has not been designated.

After your death, your Spouse may want to designate a further Beneficiary. If this is done, any amount ultimately owing under the 60 month pension guarantee will go to this person, instead of to the estate. The decision whether to designate a Beneficiary or to allow any benefits to accrue to the estate can be an important one. To determine which is best for you, you may want to get independent financial advice.

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If my Spouse is automatically my Beneficiary, why should I name someone else?

When you die, your eligible Spouse will automatically receive Survivor benefits. However in the event that your Spouse pre-deceases you, or you die at the same time, and you have no eligible Children, any death benefits will be paid to your Beneficiary. If you have not named a Beneficiary, any benefits, such as any balance owed to you under the 60 months pension guarantee, will be paid to your Estate.

Why does the Plan need to know information about my Spouse?

In the CAAT Plan, information about spouses is needed principally for assigning death benefits to the spouse after a Member passes away. A spouse who is in a position to collect a spousal pension is known as an "eligible Spouse". We use this term to describe both legally married and common law spouses of either sex. We consider it a common-law relationship if the people have lived together as a couple continuously for at least one year (less if they share children).

The personal information that we collect is also required by our actuary to complete the actuarial valuations and to calculate the Commuted Value of your pension.

I have a different Spouse now than when I joined the Plan. What papers or materials does the Plan need to ensure my file is up to date?

You should complete a Pension Membership Change of Information or Beneficiary form, available from your College. This applies to both legally married and common law relationships. If you have a separation or divorce agreement, you should also provide your College with a copy.

In most cases, your written declaration will be adequate proof of marital status, however you may be asked for a birth certificate or marriage certificate to help ensure that correct information is recorded.

When you retire, you will need to sign the Spousal Declaration on the TRD Pension Claim form (for Termination, Retirement, Death).

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February 2005