The Canada Pension Plan death benefit, or CPP death benefit, is a one-time, lump sum payment made to the estate executor or beneficiaries of a CPP contributor after they pass away.
Anyone who has contributed to the Canada Pension Plan for the required number of years is eligible for the death benefit to be paid out to their estate or beneficiaries.
Key Takeaways
- The CPP death benefit is a one-time, lump-sum payment.
- Eligibility requires a certain amount of CPP contributions by the deceased.
- You can apply online or by mail within 60 days to receive the benefit.
- The CPP death benefit is taxable.
What is the CPP death benefit?
The CPP death benefit is a one-time, lump-sum payment made to the survivor of the CPP contributor after that person’s death. The recipient could be the estate or another eligible individual.
The CPP death benefit is not the same as the CPP survivor benefit, which is an ongoing monthly payment made to the spouse or common-law partner of the deceased CPP contributor. This monthly amount is based on a percentage of the contributor’s pension.
How much is the CPP death benefit?
If the deceased meets the minimum requirements, the CPP death benefit is $2,500.
Unlike other CPP payments, this amount is the same for every eligible recipient.
Who is eligible for the CPP death benefit?
In order for the beneficiaries or estate of a CPP contributor to be eligible to receive the CPP death benefit, the deceased must have:
- Contributed to the Canada Pension Plan for at least a third of the calendar years in their contributory period for base CPP (but no fewer than 3 years) OR
- Contributed to the CPP for at least 10 years
The other eligibility factor is that you have to apply for the benefit and submit the required documentation as soon as you can after the CPP contributor’s death, and within 8 weeks if there's a will.
Who is eligible to claim the CPP death benefit?
If the deceased set up an estate before their death, the executor of that estate will apply for the CPP death benefit.
If no estate has been established, the benefit will be paid to the following people, in this order of priority:
- The administrator appointed by the court
- The person who is responsible for covering the cost of the deceased’s funeral
- The deceased person’s spouse or common-law partner
- The deceased’s next-of-kin or closest living family member
When do you apply for the CPP death benefit?
You should apply for the CPP death benefit as soon as possible, ideally within 8 weeks or 60 days of the CPP contributor’s death.
If there's no will or the executor doesn't apply during this time period, other parties may apply. This could include a next-of-kin or a court administrator.
How to apply for the CPP death benefit
You can apply for the CPP death benefit online or by mail. Both options will require you to provide a certified photocopy of the deceased’s death certificate, as well as Social Insurance Numbers for yourself and the deceased.
If you've already provided this to the CPP or Old Age Security Program, you do not have to send it again.
Both application options will also require the following information about the deceased:
- Date of birth
- Date of death
- Proof of death
- Marital status at the time of death
- Information from any other country where the deceased resided in their lives
To apply online, you'll need to log into your My Service Canada Account (MSCA). You can register for an account or log in to your pre-existing account.
To apply by mail, fill out the Application for CPP Death Benefit and accompany it with certified photocopies of the documents required. You can then send these documents to any Service Canada location.
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$25 GeniusCash + Delicious meal choices with fresh ingredients + Front-door delivery.How long does it take to get your payment after you apply?
You should apply for the death benefit within 8 weeks of the CPP contributor’s death.
The application can take up to 12 weeks to process.
What if my application is denied?
If you were denied, it might be because the deceased wasn't eligible for the benefit.
- This may be because they contributed to CPP for fewer than 3 years
- Or they may have contributed fewer than ⅓ of the years in their contributory period
If, however, you think you were incorrectly denied, you can request reconsideration via Service Canada.
Is the CPP death benefit taxable?
Yes, the CPP death benefit is taxable for the person or estate that receives the payment.
The recipient will report it as taxable income on the appropriate line on their tax return. It is not taxable if the money was used to pay directly for funeral expenses
FAQ
Does everyone get the CPP death benefit?
No. In order to receive this benefit, you must be the executor, administrator, spouse or common-law partner, next-of-kin, or person responsible for the funeral costs of a deceased person who has surpassed the minimum CPP contribution requirements. You must apply.
How much is the CPP death benefit?
The CPP death benefit is a lump-sum payment of $2,500. Every eligible recipient will receive this precise amount, no matter what the deceased's regular CPP benefit amount or other government benefit amounts may have been.
What documents do I need for the CPP death benefit?
When applying for this benefit, you’ll need to provide a certified photocopy proving the time and date of the CPP contributor’s death. This can be the deceased’s death certificate, but other documents may also be accepted.
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