Death of a Member Before Retirement

If you die before retirement, a death benefit is payable:

  • To your surviving spouse/common-law partner if you were living together at the time of your death, or 
  • To a named beneficiary or estate if you were single. 

Your spouse/common-law partner may transfer the death benefit amount to a LIRA or to a Life Income Fund (LIF). Alternately, your spouse/common-law partner may elect an immediate or deferred pension that is actuarially determined. 

If the annual pension is below 4% of the YMPE or the pension has a commuted value of less than 20% of the YMPE, it is considered a small benefit and your spouse/common-law partner may:

  • Transfer the death benefit to an RRSP, or
  • Receive the death benefit as a lump sum payment, less income tax. 

In addition, excess contributions, if applicable, may either be paid to your spouse/common-law partner as a lump sum cash refund or used to increase the pension paid to your spouse/common-law partner.

If you do not have a spouse/common-law partner at the time of your death, your designated beneficiary(ies) will receive the death benefit. In the absence of a designated beneficiary(ies) the death benefit will be paid to your estate. In either case, the death benefit is payable as a lump sum payment of the commuted value of your pension benefit, less income tax. Excess contributions, if applicable, will be paid to your beneficiary or to your estate as a lump sum cash refund, less income tax.

Note: If you are married or have a common-law partner and wish to designate a beneficiary(ies) other than your spouse/common-law partner, legislation allows for your spouse/common-law partner to waive their entitlement to the pre-retirement survivor or death benefit. In this case, your spouse/common-law partner must receive the prescribed information and complete and return a Waiver of Survivor or Death Benefit form to HEB Manitoba. For further information, please contact our Member Services team.

© 2017 HEB Manitoba

 

Disclaimer - This website provides a basic overview of the Healthcare Employees' Pension Plan (HEPP) and the Healthcare Employees' Benefits Plan (HEBP) (collectively the HEB Manitoba Pension and Benefit Plans). Not all employers participate in all Plans. Please check your eligibility for benefits with your employer.

HEB Manitoba is a name notation registered by the Healthcare Employees’ Pension Plan – Manitoba and the Healthcare Employees’ Benefits Plan – Manitoba and under which each of their respective undertakings is carried out.

The information on this website is for convenience of reference only and has no official sanction. View our full disclaimer here.