Survivors benefits while an active member.

Background Info

Order of entitlement for benefits payable:

• Eligible spouse
• Eligible dependent children. A dependent child is a natural or legally adopted child of a deceased member who, at the date of the member's death, is both dependent on the member's support and is: under age 19 for the full calendar year in which the member's death occurs; or, under the age 21 and in full-time attendance at an educational institution; or, totally disabled (child had to be totally disabled prior to age 21)
• Beneficiary
• Estate.

Definition of Commuted Value; “The commuted value of a pension is the amount of money that must be put aside today to grow with investment earnings to provide a pension at a future date"

Scenario: Your pension has not commenced prior to you and your wife's demise. Survived by 3 dependent children under the age of 21, all attending school full-time. Children are 18, 19 & 20 and all in school full-time.

Eligible dependent children's pension

The total eligible pension equals 66 2/3% of the pension earned to the date of your death. OMERS will divide the children's pension equally among your eligible dependent children who are within their dependent child benefits periods. As each child ceases to be eligible the remaining eligible children will share equally the pension entitlement.

Note that OMERS assumes that on your behalf a CPP pension from the government is payable to your survivors and hence the 0.675 OMERS offset is applied. That is Survivor's Pension = (members earned pension - offset) x 66 2/3% 

Survivor pension is split between 3 children until eldest is not eligible, that is turns 21.

Then, the pension is split between 2 children until the middle is not eligible.

Then, the pension is paid to the youngest until they are not eligible.

A refund would also apply if the pension (commuted) earned were greater than the survivor's pension (commuted): 

If there are eligible dependent children and no spouse. (Your scenario)

A benefit equal to a cash refund (less income tax) to the sum of: the commuted value of the member's pension earned since Jan. 1 1987, less the commuted value of any pension payable to the eligible dependent children is payable; plus the member's contributions made prior to Jan. 1, 1987, with interest to the date of death; less any benefits previously paid to, or on behalf of, the member.

The refund is payable to the listed beneficiary named with OMERS or estate to be distributed as per the will if you are not survived by a spouse or children.

CHAIR: T. Gurzanski