What happens to your pensions when you die?

Your own CPP retirement pension, Old Age Security, and Guaranteed Income Supplement do not pass to another person. They are payable for the month in which you die; payments received for later months must be returned. Your family or estate representative should notify Service Canada promptly.

CPP may provide separate benefits after your death. An eligible spouse or common-law partner can apply for a CPP survivor's pension, dependent children may qualify for a children's benefit, and the estate or another eligible applicant may receive a one-time death benefit. A survivor does not simply inherit your full CPP pension. The survivor pension has its own calculation, and if the survivor already receives CPP, the two benefits are combined rather than necessarily added in full.

A workplace pension follows its plan rules and the option chosen at retirement. An eligible spouse may receive a joint-and-survivor pension, while a guarantee period or beneficiary provision may create other payments. The percentage and conditions vary, so check the pension statement and ask the plan administrator to explain exactly what would be paid. Ontario's pension regulator provides a plain-language overview of pension types and survivor benefits.

Before a death occurs, keep pension contact information together, review beneficiary designations, and estimate the survivor's income instead of assuming every payment continues. After a death, the survivor should also ask Service Canada whether their own OAS, GIS, or Allowance for the Survivor entitlement changes when their marital status and household income change.