Survivors' Benefits - May 2009

Section 8: Minimum Benefit

Under the Public Service Superannuation Act, the total of all benefits is guaranteed to be normally not less than five times the plan member's annual unreduced annuity entitlement.

After the plan member has died, and where there is no longer any survivor or child eligible for an allowance, the total of all pensions and allowances paid, excluding supplementary benefits, is compared to the minimum guarantee 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 supplementary benefits, paid to the plan member, survivor and children.

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