To view and edit your beneficiaries, go to your
secure DGPP file.
If you die before retirement, a benefit equal to the total
value of your accrued pension will be paid out:
The death benefit is paid regardless of the solvency ratio of the Plan.
Tax implications of the death benefit payment
If the death benefit is paid to your spouse, the amount may be transferred tax-sheltered to your spouse’s RRSP (depending on your province of residence). This transfer in no way affects your spouse’s annual RRSP contributions or unused contribution room.
If the death benefit is paid to any other person, this person will have to add the value of your annuity to his or her taxable income. Taxes will be withheld at the following rates and the final tax rate will be calculated when the individual files his or her tax return.
($) Amount
|
Tax withholding rates |
Quebec
|
Outside Quebec
|
|
$0 to $5,000$ |
19%
|
10%
|
|
$5,001 to $15,000 |
29%
|
20 %
|
|
Over $15,000 |
34%
|
30%
|