If you should pass away before you retire, PEPP will provide a death benefit to your beneficiary equal to the value of your account balance on the payment date.
Spouse as Beneficiary
If you have a spouse, they will receive the entire death benefit.
Your spouse has the option to:
- use the death benefit to apply for the Variable Pension Benefit (VPB) or a Life Annuity;
- consolidate the death benefit into his or her own PEPP account, if they are currently a member;
- enrol as a PEPP member and leave the death benefit in the Plan;
- transfer the benefit to a Registered Retirement Savings Plan (RRSP) or Locked-In Retirement Account (LIRA), provided your spouse is younger than 72;
- transfer the benefit to another Registered Pension Plan (RPP);
- purchase a prescribed Registered Retirement Income Fund (pRRIF); or
- receive a refund less the withholding tax.
If you wish to name someone other than your spouse as your beneficiary, your spouse must complete the Spousal Waiver of Death Benefits Prior to Retirement form.
Beneficiary Other Than Your Spouse
If you do not have a spouse, or if your spouse waives entitlement to your death benefits, the death benefit (your account balance) will be paid in a lump-sum to your beneficiaries or to your estate less the withholding tax.
You may also name an alternate beneficiary who will receive the death benefit in the event your beneficiary predeceases you.
Beneficiary Under 18
If you wish to name a minor (under 18 years of age) as a beneficiary, you should appoint a trustee to ensure that the benefits will be paid according to your intentions.