Pre-retirement Death

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 who the eligible recipient is at the time of death. 

For Service Prior to January 1, 1987

If a member has pre-1987 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.

For Service on and after January 1, 1987

For this period of service, the survivor benefit is the commuted value of the deceased member's 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.