CPP survivor and death benefits explained 2024
You spend decades, your whole working life, paying into Canadian Pension Plan (CPP) benefits. But unlike the rest of your savings, which you add to your will, CPP benefits aren’t part of your estate, and you have little control over them.
That leads some to fear that they’ll disappear after death.
The good news is that’s not entirely true.
In fact, the government will pay benefits in one (or more) of 3 ways:
- Lump sum through the CPP death benefit
- Continued payments through the survivor’s pension
- Continued payments through children’s benefits
Each of these comes with a variety of stipulations about who it can be paid to and how much they will get. To help you better understand each, let’s take a closer look.
CPP death benefit
The CPP death benefit is a simple, one-time payment of $2,500, which is paid out immediately after death.
Most commonly, it is paid to the estate of the deceased. However, it can also be paid out to alternate beneficiaries, such as:
- whoever paid or will pay the funeral expenses
- surviving spouse or common-law partner
- next-of-kin
Who qualifies for the CPP death benefit?
To qualify for the CPP death benefit, contributors must have paid CPP for at least:
- One-third of the years of their contributory period (with a three-year minimum)
- 10 years
If the deceased contributor lived outside Canada, international social security agreements between countries may be used to satisfy these requirements. Head to Canada.ca to find out more about those who live outside the country.
If the contributor lived in Quebec, both their CPP and Quebec Pension Plan (QPP) payments are considered when the benefit is calculated. For more information about what to do for Canadians living in Quebec, contact Retraite Quebec.
How can you apply for the CPP death benefit?
The executor of the deceased’s will should apply for the benefit within 60 days of the date of death. However, sooner is better, so don’t wait to apply.
If an executor hasn’t been appointed, an administrator named by the court will be responsible for executing the will and applying for the benefits.
If there is no estate, or the executor hasn’t applied, the alternate beneficiaries named above can apply.
For more information on how to apply, head over to the Government of Canada’s website.
Is the CPP death benefit taxable?
The CPP death benefit benefit is taxable as income for the beneficiary (or the estate) in most situations.
The only exceptions are if the recipient is not a beneficiary of the estate and all of the below apply:
- The recipient paid the funeral expenses.
- The benefit was less than or equal to the funeral expenses.
- There are no heirs and there is no other property in the estate.
CPP survivor’s pension
The CPP survivor's pension is a monthly payment sent to the spouse or common-law partner of the deceased. The amount is calculated based on the age of the surviving spouse and the amount the deceased paid into CPP.
CPP survivor’s pension calculation
Take the amount the deceased is getting from CPP (or would be getting if they were over 65 at their death).
- Apply the age of the beneficiary.
- If the beneficiary is 65 or older, they will receive 60% of the original pension (as long as they’re not receiving other CPP benefits).
- If the beneficiary is under 65, they will receive a flat rate portion and 37.5% of the pension, if they are not receiving other CPP benefits.
Example
If John was receiving the average CPP benefit of $815 at death, his spouse (or common-law partner) would receive $489 if they were 65 or older (and not receiving other CPP benefits). If the beneficiary is under 65, they would receive a flat rate of $227.58 (for 2024) plus $305.62, for a full benefit of $533.20.
Who qualifies for the CPP survivor’s pension?
To qualify for the survivor’s pension, you must:
- be legally married to a deceased CPP contributor
OR
- be the common-law partner of a deceased CPP contributor
- a common-law partner is a person of either sex who has lived with the contributor in a conjugal relationship for at least 1 year. Instead of a marriage certificate, the following documents can be supplied as proof of a common-law relationship:
Divorce and remarriage
- The separated legal spouse of the deceased may be eligible for the benefit if the deceased did not have a common-law partner.
- Those who are widowed more than once are only eligible to receive one survivor’s pension – the larger.
- The benefit persists even after remarriage.
How can you apply for the CPP survivor’s pension?
As the survivor, you are responsible for applying for your monthly pension. If you are unable to apply, you may have a representative (such as a trustee) apply for you.
You should apply as soon as possible after the contributor's death. If you delay, you may lose benefits as CPP only makes back payments for up to 12 months.
For more information on how to apply, head over to the Government of Canada’s website.
Is the CPP survivor’s pension taxable?
The CPP survivor’s pension is taxable.
CPP children’s benefit
The CPP children's benefits is a flat rate payment of $294.12 (in 2024) which goes to up to two dependent children (the flat rate is adjusted annually for inflation).
There are 2 types of CPP children's benefits:
- Disabled contributor's child's benefit which goes to the child of a person receiving a CPP disability benefit.
- Surviving child's benefit which goes to a child of a deceased contributor. For the benefit to be paid, the deceased contributor must have made sufficient contributions to the CPP.
Who qualifies for the CPP children’s benefit?
To be eligible, the child must be either:
- under age 18
OR
- under age 25 and in school full-time
The child must also be:
- the contributor’s natural child
- a child adopted under the age of 21
- a child in the custody of the contributor while under the age of 21
Once a child turns 25, they are no longer eligible for the CPP children’s benefit.
How can you apply for the CPP children’s benefit?
A parent or guardian of a dependent child of the disabled or deceased parent can apply for the benefit if the child is under 18. The child living on their own, or capable of managing their own affairs can also apply for it themselves, even if they are under 18.
Children, or their parent/guardian, should complete an application as soon as:
- a parent/guardian has applied for a disability benefit
- a child comes into the custody of a parent/guardian who receives a disability benefit
- a parent/guardian dies
It is best to apply as soon as possible. CPP only makes back payments for up to 12 months, so delaying too long could mean lost benefits.
For more information on how to apply, head over to the Government of Canada’s website.
Is the CPP Is the CPP death benefit taxable?
It is taxed as the child’s income.