Death Benefits

Prepaid Funeral Benefit

Where a member dies, the nominee, next of kin, the deceased member’s Legal Personal Representative or authorised representative may apply for a proportion of the deceased’s member’s Compulsory Account to be paid to assist with funeral expenses. The amount payable is limited to a maximum amount of $5,000 or the balance of the deceased member’s Compulsory Account, whichever is the lesser amount,

A death certificate and a birth certificate for the deceased are required to be attached to the Prepaid Funeral Benefits Claim Form as well as the birth certificate and/or passport of the applicant.

Death Benefits and Spousal Pensions (prior to retirement)

  1. Where a member dies leaving a surviving spouse the trustee will pay a death benefit to that surviving spouse as a lump sum as described below:
    • In the case of a member with a Compulsory Account who diesbefore the normal retirement age is payable, the death benefit payable for that member will be a lump sum equal to the sum of:
      1. The insured benefit payable (see below) plus;
      2. That member’s voluntary account balance (if any) plus; and
      3. At the election of the member’s surviving spouse up to one quarter of the deceased member’s Compulsory Account balance, with the balance payable as a pension.
    • In the case of a member who has a Compulsory Account and who dies after the normal retirement age but who elected to defer receipt of their pension, the death benefit payable in respect of that member will be a lump sum equal to the sum of:
      1. That member’s voluntary account balance (if any); plus
      2. At the election of the member’s surviving spouse up to one quarter of the deceased member’s Compulsory Account balance, with the balance paid as a pension.
    • In the case of a member who does not have a Compulsory Account, the death benefit payable in respect of that member will be a lump sum equal to the balance of that member’s Voluntary Account.
    With reference to 1(A)(iii) and 1(B)(ii) above, subject to conditions the remaining balance will be paid as a spousal pension, taking into account the age of the surviving spouse. If the spousal pension payable is less than 30% of the deceased member’s annual earnings or less than the Old Age Pension, the balance of the Compulsory Account will be paid as a lump sum to the surviving spouse.

    The amount of any spousal pension payable will be determined by the Trustee on actuarial advice.

  2. Where the memberdies leaving no surviving spouse the trustee will pay a death benefit as a lump sum to or for the benefit of such of the dependants and the Legal Personal Representative(s ) of the deceased member as the trustee in its absolute discretion considers appropriate as follows:
    • in the case of a member who has a Compulsory Account and who dies before retirement age and did not take early retirement, the Trustee will pay a cash lump sum equal to the sum of:
      1. The insured benefit payable (see below);
      2. The deceased member’s Compulsory Account balance; and
      3. The deceased member’s Voluntary Account balance (if any).
    • in the case of a member who has a Compulsory Account and who dies after the normal retirement age but who elected to defer receipt of their pension, the death benefit payable will be a cash lump sum equal to the sum:
      1. The deceased member’s Compulsory Account balance; and
      2. The deceased member’s Voluntary Account balance (if any).
    • In the case of a member who does not have a Compulsory Account the death benefit payable shall be a cash lump sum equal to the balance of the deceased member’s Voluntary Account.

Spousal Pensions and Death in Retirement

Where a pensioner dies and does not have a surviving spouse, the balance in the pensioner’s pension account, if any, will be paid as a lump sum to the pensioners dependents or Legal Personal Representative(s) of the deceased pensioner as the trustee in its absolute discretion considers appropriate.

  • on the death of a pensioner with a surviving spouse who is older than or the same age, or who is less than 10 years younger than the deceased pensioner at the date of the deceased pensioner’s death, the surviving spouse will be paid a pension for life at the same rate as that received by the deceased pensioner. This payment will commence on the date of death of the deceased pensioner.
  • on the death of a pensioner with a surviving spouse who is 10 years or more younger than the deceased pensioner at the date of the deceased pensioner’s death, the surviving spouse will be paid a pension for life commencing on the date of death of the deceased pensioner. The amount of the pension payable will be determined by the trustee on actuarial advice, taking into account the age of the surviving spouse. However, if the resulting pension is less than the Old Age Pension, the remaining balance of the deceased pensioner’s account will be paid as a lump sum to the surviving spouse.

Death of a Surviving Spouse

If a surviving spouse to whom a pension is paid dies while receiving a pension, the balance of the deceased pensioner’s pension account, if any, will be paid as a lump sum to the dependents or to the legal personal representatives of the deceased spouse as the Trustee in its absolute discretion considers appropriate.

Please remember that the Trustee has the right, in consultation with the Board, to amend the rate of pension payable at any time.

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