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Death After Retirement

It can be difficult to think about what will happen to your loved ones after you pass away. This section explains what they can expect from your pension. We're here to make sure your wishes are met and are committed to helping the people in your life get what they need during a difficult time.

If you're a retired LAPP member and your spouse or partner (pension partner) has died or if you're the surviving spouse or partner, beneficiary, or the executor, executrix, or personal representative of a LAPP member's estate, here are some steps you should take:

  • Please contact us as soon as you can, as we're here to help guide you through the process of applying for any money that might be paid out by the Plan;
  • Contact the Canada Pension Plan (CPP) to discuss potential death and survivor benefits;
  • Contact your insurance company(ies), if applicable; and
  • Consider consulting an estate lawyer to help you with this process.

The benefits payable to your surviving spouse or chosen beneficiaries in the event of your death depend on the pension option you chose at retirement. The following pension options would have been available if you had a pension partner when you started your LAPP pension. These options continue to pay for as long as either of you are alive.

If you pass away first, your pension partner will continue to receive a lifetime pension. If both you and your spouse or partner pass away in the first five years of your pension, we will pay the beneficiaries you have chosen until the end of that guarantee period.

Pension Option NameSurvivor Pension DurationReduction on Death of Member or Pension PartnerGuaranteed Term Benefit Paid to Chosen Beneficiaries if Both Member and Pension Partner Pass Away
Joint Lifetime Guaranteed at Least 5 YearsFor surviving pension partner's lifetimeNo reduction5 years from pension start date
Joint Lifetime Reduced by 1/3 Guaranteed at Least 5 YearsFor surviving pension partner's lifetimeReduced by 1/3. Pension paid will be 2/3 of the original amount.

5 years from pension start date

 

If you chose to coordinate your pension — an option that was available until December 31, 2020 — after you pass away there are some important details you must remember.

What happens if I die with a coordinated pension?

If You Started Your Pension After 2003

Coordination will continue as long as you're alive.

If you die before age 65 with a coordinated pension, the increase to the monthly payment will stop. Any amount paid to your pension partner or beneficiaries reverts to your original pension choice without coordination. The pension will not be reduced on the date you would have reached 65.

If you die after age 65, the reduction in the monthly payment will stop and your pension partner or beneficiaries will receive the original monthly LAPP survivor pension.

Remember, these changes only refer to your coordination. There can be other decreases if you chose a pension option with a reduced survivor benefit, such as Joint Lifetime Reduced by 1/3.

If You Started Your Pension Before 2004

Coordination will continue for as long as a pension is being paid to you or your pension partner or beneficiary.

If you die before age 65 with a coordinated pension, the increase to the monthly payment will continue until the point at which you would have turned 65. Any amount paid to your pension partner or beneficiaries will be reduced on the date you would have reached 65.

If you die after age 65, the reduction in the monthly payment will continue for the survivor pension your pension partner or beneficiaries will receive.

Remember, these changes only refer to your coordination. There can be other decreases if you chose a pension option with a reduced survivor benefit, such as Joint Lifetime Reduced by 1/3.

The benefits payable to your surviving spouse or chosen beneficiaries in the event of your death depend on the pension option you chose at retirement. The following pension options would have been available if you did not have a pension partner when you started your LAPP pension, or if your pension partner chose to sign a Pension Partner Waiver. They are payable for your lifetime only.

Options with guaranteed terms mean if you pass away before the end of the guarantee period, we will pay the beneficiaries until the end of that guarantee period. Please note if you had a spouse or partner at retirement and:

  • That spouse or partner completed a pension waiver prior to March 1, 2021, you can name any beneficiary; or
  • That spouse or partner completed a Pension Partner Waiver on or after March 1, 2021, your spouse or partner is automatically the sole designated beneficiary of the guaranteed period, unless they also complete a Death Benefit Waiver giving up that right and allowing you to name any beneficiary. The Death Benefit Waiver can be completed by your spouse or partner at any time after your retirement, allowing you to name any beneficiary.
Pension Option NameGuaranteed Term benefit Paid to Chosen Beneficiaries on Death of Member
Single LifetimeNone
Single Lifetime Guaranteed At Least 5 Years5 years from pension start date
Single Lifetime Guaranteed At Least 10 Years10 years from pension start date
Single Lifetime Guaranteed At Least 15 Years15 years from pension start date

If you chose to coordinate your pension — an option that was available until December 31, 2020 — after you pass away there are some important details you must remember.

What happens if I die with a coordinated pension?

If You Started Your Pension After 2003

Coordination will continue as long as you are alive.

If you die before age 65 with a coordinated pension, the increase to the monthly payment will stop. Any amount paid to your beneficiaries reverts to your original pension choice without coordination. The pension will not be reduced on the date you would have reached 65.

If you die after age 65, the reduction in the monthly payment will stop and your beneficiaries will receive the original monthly LAPP survivor pension.

If You Started Your Pension Before 2004

Coordination will continue for as long as a pension is being paid to you or your beneficiaries.

If you die before age 65 with a coordinated pension, the increase to the monthly payment will continue until the point at which you would have turned 65. Any amount paid to your beneficiaries will be reduced on the date you would have reached 65.

If you die after age 65, the reduction in the monthly payment will continue for the survivor pension your pension partner or beneficiaries will receive.

Any death benefits payable to beneficiaries after your death will be made according to the most recent information we have on file. Because of this, it's important to keep your beneficiaries updated at all times. If you would like to make changes to your beneficiaries, you can do so online by logging in to Your Pension Profile on this website or by using the Designation of Beneficiary(ies) form and sending it to us.

A legal will can also be used to tell us who your beneficiary is, but your will must refer to “LAPP,” “Local Authorities Pension Plan,” or “your employment-based pension plans." Beneficiaries have the option of receiving monthly payments until the end of the guaranteed term, or they can receive a lump sum payout of the commuted value of that amount.

Review the beneficiaries you have chosen on your yearly Pensioner Annual Statement or at any time by logging in to Your Pension Profile.


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