OAS And CPP Benefits For Surviving Children And Spouse

What retirement benefits are available for survivors following the death of a parent, common-law partner, or spouse?

If the deceased individual made contributions to the Canada Pension Plan (CPP), then the person’s survivors might qualify to receive benefits which include Children’s benefits, Survivor’s pension, and the CPP Death benefit.

A surviving spouse might also qualify to receive Old Age Security (OAS) payments under what is called Allowance for the Survivor, which is a type of benefit.

  • CPP Death Benefit

This is a lump-sum one-time payment that is made to the deceased’s estate.

OAS And CPP Benefits For Surviving Children And Spouse
OAS And CPP Benefits For Surviving Children And Spouse

If there is an estate, the Court-appointed administrator or executor of the will can apply to receive the death benefit. In situations where there is no estate, the death benefit may be paid directly to the individuals below, in that order of priority:

  • The institution or person who is responsible for paying for the funeral costs
  • The common-law partner or spouse
  • The deceased’s next of kin.

1. CPP Death Benefit Eligibility And Amount

In order to be eligible to receive a death benefit payment, the deceased person must have contributed to the CPP for 10 calendar years or one-third of all calendar years within their contributory period, whichever is less.

In order to be eligible to receive a death benefit payment, the deceased person must have contributed to the CPP for 10 calendar years or one-third of all calendar years within their contributory period, whichever is less.

The amount of the payment will depend on how long and how much was contributed by the deceased to the CPP. The average amount that was paid in 2019 to new beneficiaries was $2,488.97 with $2,500 as the maximum amount.

A $2,500 flat-rate will be paid in 2020 to all beneficiaries as a death benefit no matter what CPP contributions the deceased made.

2. CPP Survivor’s Pension

This benefit is paid to the deceased’s legal surviving common-law partner or spouse. If the legal spouse and the deceased were separated and the deceased did not have any cohabitating common-law partner, then the surviving spouse may be eligible to receive the survivor’s pension benefit.

Survivor’s Pension Amount

How much you receive eventually will depend on many different factors and the complicated calculations made by Service Canada. In general, the survivor’s benefit depends on the following:

  • Whether or not you are receiving other disability benefits or pension
  • Surviving spouse’s age
  • Deceased spouse’s CPP contributions

Example 1: If the survivor is not receiving other CPP benefits, and is at least 65 years old, their survivor’s pension will be 60% of what the deceased contributor’s pension would have been at age 65.

The average amount paid monthly as a survivor’s pension as of October 2019 to new beneficiaries 65 years old or older was $304.43. For 2020, $705.50 s the maximum payment amount.

Example 2: If a surviving spouse is 40 to 64 years old and is not receiving other CPP benefits, then they will get 37.5% of the retirement pension of the deceased contributor in addition to a flat rate portion.

The average survivor’s pension paid monthly to new beneficiaries as of October 2019 was $443.37 for those younger than 65 years old. For 2020, the maximum amount is $638.28.

Those are just a couple of examples from the wide range of potential scenarios. If you are not sure what to expect or how to proceed, call Service Canada at 800-277-9914 (TTY: 800-255-4786).

Other Important Points About The Survivor’s Pension:

  1. You only can receive one survivor’s pension, no matter how many spouses you survive. You are paid whichever benefit is the largest.
  2. If you re-marry you do not lose your survivor’s benefit.
  3. If you receive other CPP benefits already, all of your pension benefits will be combined and then paid out in one monthly payment.
  4. The total maximum benefit you can obtain if you are receiving both survivor’s pension, as well as other CPP benefits, is $1,175.83 in 2020, which is the maximum retirement pension.

3. CPP Surviving Child’s Benefits.

This is a monthly payment that is available to a deceased CPP contributor’s dependent children. In order to be eligible, a child must be younger than 18 years old, or 18 to 25 if a child is enrolled in school.

The child can be an adopted or natural child of the deceased individual.

In October 2019, the average children’s monthly benefit that was paid to new beneficiaries was $250.27. In 2020, $255.03 is the maximum benefit.

4. OAS Allowance For The Survivor

This benefit is available to common-law partners or surviving spouses who have a low income and are 60 to 64 years old.

You must earn a maximum of $25,056 in order to qualify for the benefit. The maximum monthly payment for the January to March quarter in 2020 is $1,388.92.

The allowance for the survivor benefit, unlike the CPP benefit payments, is non-taxable.

 

HOW TO APPLY FOR SURVIVOR BENEFITS.

It’s crucial that you inform the federal government instantly after the death of an individual getting CPP or OAS advantages. Otherwise, any settlements made to the deceased shortly after the month of passing will need to be paid back.

Send out in your application request for passing and children’s advantages and the survivor’s pension as quickly as you are able to after the factor’s death. This are going to guarantee you do not lose on advantages.

For the Commission for the Survivor advantage, use 6 to 11 months prior to your 60th birthday. An enduring partner can begin getting a survivor’s pension account as sone as the month after the grantor’s death.

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