Life events

​​Arranging survivor benefits

Your pension funds are a valuable benefit – both for you and any loved ones you leave behind. It is important to review your designation regularly to ensure it fits with your current situation.

​Pre-retirement

If you die before you start receiving retirement income, the nature of your survivor’s benefits depends on whether you have a spouse.​

Spouses have certain rights and entitlements to pension funds.

Should you die before you retire, your spouse (married or common-law*) has first claim to your pension funds and investment earnings as defined by pension laws​ – even if you designate a different person as beneficiary.

It is not necessary to name a spouse as a beneficiary for this reason. Note that most jurisdictions allow your spouse to waive this entitlement.

Should your spouse die before you, any named beneficiary(ies) will receive your pension benefits (net income tax).

*The definition of a spouse varies by province/territory. Please refer to the definition of spouse according to the provincial/federal pension legislation noted on your CSS Pension Plan annual statement.

If you are separated

If you die before you retire, your separated spouse may still have first claim to your pension benefits.

Contact us to determine if this applies to your particular case.​

Additional voluntary contributions (AVCs)

Although your spouse has first claim to your (and your employer's) required contributions, he or she may not have first claim to any additional voluntary contributions (AVCs)​ (and related earnings) you may have made.

If you die before you retire, any AVCs would be paid to your designated beneficiary(ies) or estate.

If you designated someone other than your spouse or if you direct your funds to be paid to your estate, the funds would be paid as a lump sum and subject to income tax.

If you do not have a spouse, or if your spouse waives the first claim to your pension funds, you can designate a beneficiary (or beneficiaries) to receive your pre-retirement pension funds. Otherwise your pension funds would be paid to your estate.

Choosing a beneficiary other than your estate may:

  • Help avoid the delays and costs associated with estate administration

  • Reduce the tax payable on your pension funds upon your death

You should consult your lawyer and/or accountant to review the tax effect of your designation.

If you choose to designate minors* as beneficiaries, we suggest you name an adult trustee in the area indicated on the Plan's Designation of Beneficiary form​.

Otherwise, any pension benefits left to minors will be payable to provincial authorities to be invested and administered on their behalf until they become adults.

*A minor is a person under the age of majority in each province/territory​

​How to designate or change a beneficiary

Your beneficiary (spouse or primary beneficiary only) is listed on your CSS Pension Plan annual statement and myCSSPEN profile.

Here are the steps to take if you choose to designate or change a beneficiary:

  • To designate a beneficiary, complete the  Designation of Beneficiary form and send it to the CSS Pension Plan via mail, fax or email (members entitled to benefits under federal jurisdiction must mail in original copy). It becomes effective once we receive the completed form. 
  • To change or revoke a beneficiary, complete a new Designation of Beneficiary form and send it to the CSS Pension Plan via mail, fax or email (members entitled to benefits under federal jurisdiction must mail in original copy). The most recently completed designation we receive becomes the current designation.

Designating a beneficiary in your Will

The Rules of the Plan​ also permit you to designate a beneficiary or revoke a previous designation in your Will.

The designation must specifically refer to your CSS pension funds to be effective.

If you choose to designate, change or revoke a designated beneficiary through your Will rather than by completing and forwarding a Designation of Beneficiary form to the CSS Pension Plan, you should consult your lawyer.​

 

Post-retirement

If you die after you start receiving retirement income, your survivor’s benefits depend on the type of retirement income option you chose.​

Joint and Last Survivor Pension

  • If you die before the guarantee period ends, the full monthly pension payment will continue to your spouse for the balance of the guarantee period. Once the guarantee period ends, your spouse will receive a pre-selected percentage of the pension for the rest of his or her life.

  • If both you and your spouse die before the guarantee period ends, then the monthly pension payments will continue to your beneficiary(ies) or estate for the rest of the guarantee period, and then stop.

Single Life Pension

If you die before the guarantee period ends, then the monthly pension payments will continue to your beneficiary(ies) or estate for the rest of the guarantee period, and then stop.​

If you have a spouse

Under pension laws, your surviving spouse is automatically entitled to all the funds remaining in your VB account, if any, when you die (unless your spouse waives this right).

If you name your spouse as the "specified beneficiary" then they can continue with the remaining VB payments or transfer the balance (if any) out of the Plan. If your spouse decides to transfer out of the Plan, they must contact our office for more information. 

If you don't have a spouse (or if your spouse waives entitlement)

Your VB account balance is paid as a lump sum (subject to income tax) to your named beneficiary(ies) or estate.​

Common accident

In all provinces and territories where the Plan operates, legislation settles the order of succession to your property if you and your beneficiary die in a common accident.

You may wish to consult your lawyer to designate an alternate beneficiary in your Will.​

If you are the surviving spouse, partner or beneficiary

If a CSS member has passed away, as the surviving spouse, partner or beneficiary it is important to contact us as soon as possible. 

Contact us as soon as possible about the member's passing. 

We will then help guide you through the process of any funds that may be paid out by the Plan.

CSS will use the most recent information on file to identify the member's listed beneficiary(ies).

When you contact us, you will need to provide proof of the member's death, the most valid document being the member's death certificate. You will need to email or fax the member's death certificate to us.

For validation, we may also ask you to provide the member's:

  • Member ID number

  • Social Insurance Number

  • Birth date

  • Will