Navigating the complexities of government benefits after a loved one’s passing can be challenging. This article sheds light on two key programs in Canada: Old Age Security (OAS) and the Canada Pension Plan (CPP), specifically addressing the question of death benefits.
Old Age Security (OAS) and Death Benefits
The OAS program provides a monthly income benefit to eligible Canadian seniors. Unlike the CPP, which requires contributions during working years, there is no contribution element to OAS.
Key takeaway: OAS does not offer a death benefit.
Upon the death of an OAS recipient, their benefits cease and are not transferred to a surviving spouse or child.
Allowance for the Survivor Benefit
However, there is a program called the Allowance for the Survivor that may be available to surviving spouses or common-law partners aged 60 to 64 who meet specific income criteria.
Eligibility for the Allowance for the Survivor:
- Age: Must be between 60 and 64 years old.
- Residency: Must have resided in Canada for at least 10 years after turning 18.
- Marital Status: Not be remarried or in a common-law partnership.
- Income: Must have an annual income below a set threshold (currently $29,112).
Benefits of the Allowance for the Survivor:
- The maximum monthly benefit is $1,614.89 (as of April 26, 2024).
- Helps bridge the income gap for eligible survivors facing financial hardship.
Applying for the Allowance for the Survivor:
Applications can be submitted online through the My Service Canada Account or by mail using specific forms available on the Service Canada website.
Canada Pension Plan (CPP) and Death Benefits
![Does the OAS include a Death Benefit?](https://safeharborprivatebanking.com/wp-content/uploads/2024/04/happy-senior-spouses-bills-laptop-1.jpg)
The CPP provides a monthly retirement benefit to contributors and their eligible survivors. Unlike OAS, the CPP requires contributions throughout a person’s working years.
Does the CPP offer a death benefit?
Yes, the CPP offers a one-time death benefit of $2,500 to the estate of a deceased contributor.
Who can claim the CPP death benefit?
- The executor of the deceased contributor’s estate.
- The person who paid the funeral expenses.
- A surviving spouse or common-law partner.
- The next-of-kin of the deceased.
Applying for the CPP Death Benefit:
Contact Service Canada for details on application procedures and required documentation.
Important Considerations
- The CPP death benefit is a one-time payment, not an ongoing benefit.
- The OAS Allowance for the Survivor is available to a specific group (surviving spouses or common-law partners aged 60 to 64 with low income).
Additional Considerations for Survivors
- Survivors of a public service pension plan participant may be eligible for a supplementary death benefit (SDB) in addition to the CPP death benefit.
- It’s advisable for survivors to contact the appropriate government agency (Service Canada or the relevant public service pension plan) to determine their eligibility for any available benefits.