In the Event of Your Death

Before Retirement

If you die before retirement, the Plan provides a pre-retirement death benefit, equal to the market value of your pension account, payable to your spouse. If you do not have a spouse or if your spouse has waived his/her right to a pre-retirement death benefit, the benefit is paid to your designated beneficiary(ies) or estate.

Your spouse may choose to receive the pre-retirement death benefit in the form of any of termination/retirement options that were available to you under the Plan. Refer to “Leaving UBC” for a description of the options.

Death benefits payable to persons or organizations other than a spouse or dependent child/grandchild, must be paid as a lump sum and are subject to taxation.

For Canadian residents, the withholding tax rate is between 10% and 30%. In Quebec, the rate is between 5% and 15% plus provincial withholding tax.

If you withdraw: Withholding tax rate
(except Quebec)
Withholding tax rate
in Quebec
Up to $5,000 10% 5%
Between $5,001 and $15,000 20% 10%
More than $15,000 30% 15%

If you are not residing in Canada at the time of the benefit payment(s), tax withheld is based on your country of residence, at a fixed rate of 25% or lower if there is a tax treaty.

The above rates are set by the Canada Revenue Agency. These rates do not represent the actual tax that may be owed by an individual plan member. Taxes owing is determined by the plan member’s personal tax rate when filing his or her tax return for the year in which the benefit payment(s) is received.

After Retirement

Any benefits payable from the Plan on your death after retirement are determined by the retirement income option you elected when you retired and started your pension.

Upon notification of death, Sun Life will be in contact with your spouse or beneficiary and the Pension Administration Office (PAO) will be available to assist in completing the necessary forms.