Death of a Member Before Retirement

If you die before retirement, a death benefit is payable:

• To your surviving spouse/common-law partner if you were living together at the time of your death, or 
• To a named beneficiary or estate if you were single. 

Your spouse/common-law partner may transfer the death benefit amount to a LIRA or to a Life Income Fund (LIF). Alternately, your spouse/common-law partner may elect an immediate or deferred pension that is actuarially determined. 

If the annual pension is below 4% of the YMPE or the pension has a commuted value of less than 20% of the YMPE, it is considered a small benefit and your spouse/common-law partner may:

• Transfer the death benefit to an RRSP, or
• Receive the death benefit as a lump sum payment, less income tax. 

In addition, excess contributions, if applicable, may either be paid to your spouse/common-law partner as a lump sum cash refund or used to increase the pension paid to your spouse/common-law partner.

If you do not have a spouse/common-law partner at the time of your death, your designated beneficiary(ies) will receive the death benefit. In the absence of a designated beneficiary(ies) the death benefit will be paid to your estate. In either case, the death benefit is payable as a lump sum payment of the commuted value of your pension benefit, less income tax. Excess contributions, if applicable, will be paid to your beneficiary or to your estate as a lump sum cash refund, less income tax.

Note: If you are married or have a common-law partner and wish to designate a beneficiary(ies) other than your spouse/common-law partner, legislation allows for your spouse/common-law partner to waive their entitlement to the pre-retirement survivor or death benefit. In this case, your spouse/common-law partner must receive the prescribed information and complete and return a Waiver of Survivor or Death Benefit form to HEB Manitoba. For further information, please contact our Member Services team.