Survivor pension

[Crimmsy]

I am seeking confirmation whether or not my understanding of survivors pensions is correct. Let us consider the hypothetical case of a married, no kids, reg force member with 15 years pensionable service, serving on an IE25, who passes away.

From Canadian Forces Superannuation Act para 25(4),

Benefits payable on death of serving member — more than two years

(4) On the death of a contributor who has to their credit two or more years of pensionable service and was a member of the regular force at the time of death, the survivor and children of the contributor are entitled to the annual allowances to which they would have been entitled under subsections (1), (2) and (3) had the contributor, immediately before death, become entitled under this Part to an annuity or an annual allowance.

Subsection (1) stating

Benefits payable on death of retired member

25. (1) On the death of a contributor who, at the time of their death, was entitled under this Part to an annuity or an annual allowance, the survivor and children of the contributor are entitled to the following allowances, computed on the basis of the product obtained by multiplying the average annual pay received by the contributor during the period specified in subparagraph 15(1)(a)(ii) by the number of years of pensionable service to the contributor’s credit, one one-hundredth of the product so obtained being referred to in this section as the “basic allowance”:

(a) in the case of a survivor, an immediate annual allowance equal to the basic allowance;
remainder snipped, applicable only to surviving children

And, flipping to subparagraph 15(1)(a)(ii):

15. (1) The amount of any annuity to which a contributor may become entitled under this Act is an amount equal to the aggregate of

(a) an amount equal to

(i) the number of years of pensionable service to the credit of the contributor occurring in the period preceding the day on which this subsection comes into force, not exceeding thirty-five, divided by fifty,

multiplied by

(ii) the average annual pay received by the contributor during any five-year period of pensionable service selected by or on behalf of the contributor, or during any period so selected consisting of consecutive periods of pensionable service totalling five years, or

(iii) in the case of a contributor who has to the contributor’s credit less than five years of pensionable service, the average annual pay received by the contributor during the period of pensionable service to the contributor’s credit, and

(b) an amount equal to

(i) the number of years of pensionable service to the credit of the contributor occurring in the period on and after the day on which this subsection comes into force, not exceeding thirty-five years less the number of years of pensionable service to the credit of the contributor under subparagraph (a)(i), divided by fifty,

multiplied by the lesser of

(ii) the average annual pay received by the contributor during the period referred to in subparagraph (a)(ii) or (iii), as applicable, and

(iii) the annual rate of pay that is fixed by the regulations made under paragraph 50(1)(g), or that may be determined in the manner prescribed by those regulations, and in force on the day on which the contributor most recently ceased to be a member of the regular force.

So, by my layman's reading of all that, the widow of the member in question would be entitled to a pension (properly, an allowance) of 15 YOS * 1% * (average of best five years). Assuming a best five years of, say, $80,000, that would result in a pension of 15*1%*80,000= $12,000.

My questions then -

1. Did I do the math right?
2. Is this amount indexed (when survivor reaches age 60 or otherwise?)
3. Does cause of death, ie service related vs accident vs illness, factor at all into eligibility? (I don't see anything in the act that would indicate this.)

Thanks all 

 

[DAA]

Your math looks reasonable.  The survivor allowance is approximately 50% of what the actual contributor would have received.

Survivor Benefits ---->  http://www.forces.gc.ca/en/caf-community-pension/survivor-benefits.page

 

[Crimmsy]

Thanks for the link, DAA. Far more readable than the Act!

 

[DAA]

Thanks for the link, DAA. Far more readable than the Act!

Another good source of information on the topic that no one speaks about........

http://www.forces.gc.ca/assets/FORCES_Internet/docs/en/caf-community-benefits-ill-injured-deceased/guide-eng.pdf