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
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.