Survivor Benefits. October 14, 2014

Transcription

1 Survivor Benefits October 14, 2014

2 Survivor Benefits Pre-retirement Order of entitlement Case Studies Post-retirement Order of entitlement Case studies Roles and responsibilities

3 3 Survivor benefits All Plan members are entitled to survivor benefits Survivor Benefits refer to any payment after the death of a member Survivor Benefits include Pre-retirement death benefit Survivor pension Children s pension Beneficiary payout

4 4 Survivor Benefits Definitions Spouse Eligible Spouse Eligible Children Designated Beneficiary

5 5 Spouse The spouse is the person to whom the member is legally married or in a common-law relationship. Common-law, for the purposes of the CAAT Pension Plan means a couple that has been living together for at least one year (less if the couple has children).

6 6 Eligible Spouse Pre-Retirement Death Benefit The CAAT Pension Plan considers the spouse to be the eligible spouse for the pre-retirement death benefit if: The member and the member s spouse are living together at the time of member s death (in other words, not living separate and apart ), and The spouse has not waived the pre-retirement death benefit.

7 7 Eligible Children The member s son or daughter must be: their biological or adopted child, under the age of 18 and dependent on the member for support.

8 8 Designated Beneficiary The designated beneficiaries are the person (or persons) chosen by the member to receive the applicable survivor benefit upon the member s death in the event there is no eligible spouse.

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10 Pre-retirement death benefits

11 11 Pre-retirement death At the time of death, the Plan determines who the recipient of the pre-retirement death benefit will be. The order is predetermined.

12 12 Pre-retirement death benefit order of entitlement Eligible Spouse Sole recipient of pre-retirement death benefit No other payments are made

13 13 Pre-retirement death benefit order of entitlement No Eligible Spouse, but Eligible Children Children s pension paid to eligible children Any residual after deducting CV of children s pension would be paid to the Designated Beneficiary

14 14 Pre-retirement death benefit order of entitlement No Eligible Spouse Or Eligible Children Designated Beneficiary payout

15 15 Quiz

16 16 Naming a Designated Beneficiary Who can be Designated Beneficiary? Members can choose anyone More than one Designated Beneficiary? Member must dictate the manner the benefit is to be split Must equal 100%

17 17 Pre-retirement death benefits Question: What happens if the member s spouse is also named the sole Designated Beneficiary?

18 18 Pre-retirement death benefits Answer: If the spouse is the eligible spouse at the time of the member s death, then he or she is entitled as eligible spouse. If the spouse is not the eligible spouse at the time of the member s death and there is no other eligible spouse, then he or she is entitled to receive whatever amount is payable to the designated beneficiary.

19 19 Case study Loretta Loretta is separated from her legal spouse, but not divorced. She shares custody of their three children, ages 14, 16 and 19, with her separated spouse. However she has continued to name her separated spouse as her designated beneficiary in the Pension Plan. Loretta dies before retirement. Who gets the pre-retirement benefit?

20 20 Case study Loretta Loretta s spouse is not the eligible spouse for the purposes of the Plan Two of her children are under age 18 and therefore eligible, so they will receive the children s pension, divided between them. In addition, her separated spouse, as designated beneficiary, receives the remainder of the value after children s pension is calculated

21 21 Case study Pierre Pierre s pension plan record showed that he had no spouse. After his death, a person claiming to be his Common- Law spouse came forward to claim the preretirement death benefit.

22 22 Case study - Pierre The Plan will investigate What kind of evidence would be acceptable? Plan looks for a range of documents that show they were living together, for example: Property in both names (eg Lease agreement, mortgage) Common bills (same address) Joint bank account

23 23 Case study Marcus Marcus is in a common-law relationship. His partner has signed a domestic contract, waiving the right to a pre-retirement death benefit. If Marcus dies, is the common-law spouse eligible for the pre-retirement death benefit?

24 24 Case Study Marcus The waiver of the entitlement to a pre-retirement death benefit must follow a specific form, and the FSCO form must be used; Marcus partner did not use that form, and therefore is the eligible spouse for the purposes of preretirement death benefits;

25 25 Case Study Rory Rory has named his brother John as his Designated Beneficiary using the Plan s forms After that, he named his sister Sally as beneficiary of his pre-retirement death benefit in his will and a copy was provided to the Plan.

26 26 Case Study Rory Provided the designation is properly made, the most recent designation supersedes any prior designations

27 27 Quiz

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29 Post-retirement death benefit

30 30 Post-retirement survivor benefits Definition of Spouse stays the same But Eligible Spouse is changed slightly Need to look at both the time of retirement and at the time of death to determine

31 31 Post-retirement survivor benefits The CAAT Pension Plan considers the spouse at retirement to be the eligible spouse for the postretirement death benefit if: The member and the member s spouse are living together at the time pension started (in other words, not living separate and apart ), and The spouse did not waive the survivor pension benefit a the time of the member s retirement

32 32 Post-retirement survivor benefits This eligible spouse at retirement remains the eligible spouse unless: Pre-deceases the member Subsequent separation or divorce and the survivor pension is waived by the spouse as part of such separation

33 33 Post-retirement survivor benefits Subsequent spouse at death can be the Eligible Spouse if Member did not have an eligible spouse on retirement, but has a spouse at the time of death, that spouse would be the eligible spouse, provided living together. The eligible spouse at retirement: pre-deceased the member entitlement waived by spouse as part of a separation or divorce after retirement

34 34 Order of entitlement Suvivor pension Children s pension 60 months guarantee

35 35 Case study Phillip Phillip was married and living with his wife when he retired, but he and his wife subsequently divorced and Phillip remarried When Phillip dies, will his new spouse collect the post-retirement death survivor pension? Who is the eligible spouse for the purposes of the survivor pension?

36 36 Case study Phillip If, on retirement or on divorce, the spouse at retirement waived the pension, the new spouse is the eligible spouse If the pension was not so waived, the prior spouse at retirement is the eligible spouse

37 37 Quiz

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39 Roles and Responsibilities

40 40 Roles and responsibilities What is the member s responsibility? What is the employer s role? What is the Plan s role?

41 41 Member responsibilities It s the member s benefit Member must keep Plan up-to-date on spousal status and changes The member is entitled to name anyone they wish as Designated Beneficiary Can name any number of people as Designated Beneficiaries Total must add up to 100%

42 42 Employer s role Ensure members know where to find information on this decision Pre-retirement death: Notify the Plan and provide earnings, service, and salary information for year of death Post-retirement death: Notify the Plan if you are informed

43 43 Pension Plan role Check beneficiary designation to ensure that percent share totals 100% At event: Confirm who must be paid Plan may require evidence of common-law relationship, living separate and apart, Proof of age for Children s pension

44 44 Quiz

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