Benefits for Retired Members
June 2011 - Section 13

Minimum Benefit

The Public Service Superannuation Act, provides a guaranteed minimum benefit which is equal to five times the plan member's annual unreduced pension.

After the plan member has died, and where there is no longer any survivor or children eligible for an allowance, the total of all pensions and allowances paid, excluding indexation, is compared to the minimum guaranteed amount. If there is a balance owing, it is paid in a lump sum to the beneficiary designated for the Supplementary Death Benefit or, if no beneficiary was designated or the beneficiary died before the plan member, to the plan member's estate.

NOTE: If the plan member retired before December 20, 1975, the minimum benefit is equal to the return of contributions plus interest, minus the total of all benefits, excluding indexation, paid to the plan member, survivor and children.

In the case of a minimum benefit payment, it may be advisable for the beneficiary to seek income tax and related advice before the payment is made.