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A pre-retirement death may occur when the member is still an active member, or
dies during the deferral period.
When OPTrust is advised by the employer of a Plan member’s death by means of a
completed Notification of Death (OPTrust 1063), a copy of the proof of
death should also be provided. Proof of death may be either a copy of the death
certificate, or Funeral Director’s Proof of Death. If required, OPTrust
will contact the deceased’s representative to provide a copy of the deceased’s
“Last Will and Testament,” if one exists, and the name of the estate’s executor
or trustee.
When a member dies, the OPSEU Pension Plan provides benefits to his/her eligible
survivors. The survivor benefits take on a different form, depending on the
member’s vested status, and who the eligible recipient is at the time of death.
If a member has 10 or more years of credit or continuous
membership, the benefit is an immediate pension payable to the eligible spouse
for his/her lifetime. This amount is equal to 60% of the age 65, CPP Integrated
pension (i.e., the pension that the member would have received, assuming the
member had attained 65 years of age at the date of his or her death). If there
is no eligible spouse at the date of death, the eligible child(ren) will receive
the immediate pension detailed above for the remainder of their eligibility
period.
However, if there is no eligible spouse or eligible children at the date of
death, the benefit is a lump sum refund equal to the member’s pre-1987
contributions, with interest, payable to the refund recipient. If no refund
recipient was designated, this lump sum refund will be payable to the member’s
estate.
If a Member has 24 or more months of credit or continuous membership in
the Plan, the survivor benefit is the commuted value of the deceased’s members
pension. The benefit is payable to the eligible spouse as a deferred pension,
immediate pension based on the commuted value or lump sum payment. If there is
no eligible spouse at the time of death or, if the eligible spouse has waived
the post1986 survivor benefit, the commuted value of the pension will be paid to
the beneficiary as a lump sum payment.
If a Member has less than 24 months of credit and continuous membership
in the Plan, the survivor benefit is a lump sum refund equal to two times the
member’s contributions made since January 1987, plus interest. The benefit is
payable to either the eligible spouse or the eligible child(ren). If there is no
eligible spouse and no eligible child(ren) at the time of death, the benefit is
a lump sum refund equal to the member’s contributions, together with interest,
and will be paid to the beneficiary. If no beneficiary was designated,
this benefit is payable to the member’s estate.
Revised January 2010
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