When a member dies

What happens if I die while still employed by Canada Post?

With less than two years of continuous service

Your spouse or common-law partner will be entitled to

  • a lump-sum payment of your DC account balance, including Canada Post's contributions and investment earnings, less applicable taxes; or,
  • transfer your DC account balance to a personal registered retirement savings plan (RRSP).

If you do not have a spouse or common-law partner at the time of your death, the DC account balance, less applicable taxes, will be paid to your designated beneficiaries or, if you do not have beneficiaries, to your estate.

If you have a VSP account, the funds minus applicable taxes will be paid to your designated beneficiaries or, if you do not have beneficiaries, to your estate.

With two or more years of continuous service

Your spouse or common-law partner will be entitled to your DC account balance, which includes Canada Post's contributions and investment earnings.

Your spouse or common-law partner will have the option to

  • transfer the DC account balance to a locked-in registered retirement savings plan (RRSP), a life income fund (LIF), or a registered retirement income fund (RRIF);
  • use the DC account balance to purchase an annuity from an insurance company; or
  • leave the money in the Plan until their legislated maximum retirement age, at the latest (Under this option, your spouse or common-law partner pays all fees related to the account from then on.)

If you do not have a spouse or common-law partner at the time of your death, the DC account balance, less applicable taxes, will be paid to your designated beneficiaries or, if you do not have beneficiaries, to your estate.

If you have a VSP account, the funds minus applicable taxes will be paid to your designated beneficiaries or, if you do not have beneficiaries, to your estate.

What happens if I die after retirement?

Once you retire, the benefits paid to your survivors in the event of your death will be made in accordance with the retirement arrangement you chose when you retired. For example, if at retirement or termination of employment, you use your DC account balance to purchase an annuity, benefits paid at your death will depend on the type of annuity you purchased (for example, you can choose an annuity that will pay survivor benefits to your spouse or common-law partner).