If a MEPP member has passed away, it is important to contact Member Services as soon as possible.
If a member should pass away before they begin collecting their pension, MEPP will pay a benefit to either the member’s pension partner or beneficiaries. This will depend on whether the member was vested at the time of their death, and when their service in MEPP had been earned.
See the following for more information:
Post 1991 Service
Not Vested (Fewer Than Five Years of Service)
If a member is not vested at the time they pass away, their pension partner will be entitled to a refund of the member’s MEPP contributions with interest.
If a member does not have a pension partner (or if their pension partner has completed a pre-retirement death waiver ), the member’s chosen beneficiaries will be entitled to the member’s MEPP contributions with interest.
If a member has no beneficiary information on file, the member’s MEPP contributions, plus interest, will be paid to the representative of the member’s estate.
Vested (Five or More Years of Service)
If a member is vested when they pass away, their pension partner will be entitled to a choice of a monthly lifetime pension or a one-time lump-sum payment based on the commuted value of the member’s pension.
- The monthly pension payment will start immediately and continue even if the pension partner is working, re-marries or moves outside of Canada.
- A commuted value (CV) lump sum paid to a pension partner is normally transferred to a Locked-In Retirement Account (LIRA). The total payout amount may also contain a portion of non-locked funds, which are paid as a taxable cash lump sum or else transferred to a Registered Retirement Savings Plan (RRSP) at the pension partner’s choice.
LIRAs have strict rules about how and when the funds can be accessed. For further information on converting LIRA funds, visit the Government of Alberta Private Sector Pensions page.
If a member does not have a pension partner (or if their pension partner has completed a pre-retirement death waiver), the member’s chosen beneficiaries will be entitled to a one-time lump-sum payment based on the commuted value of the member’s pension. They will be sent a cheque with the appropriate amount of income tax withheld.
If a member does not have a beneficiary on file with MEPP, the lump-sum payment based on the commuted value of their benefit will be paid to the personal representative of their estate. Tax rules do not allow a transfer to a LIRA for a beneficiary other than a spouse or former spouse.
| Relationship | Benefit |
|---|---|
| Pension partner may choose either (a) or (b) unless a pre-retirement death waiver was completed (i.e a beneficiary is named): | (a) Pension for life plus any excess contributions on post-1991 service. (b) Commuted value of the benefit plus any excess contributions on post-1991 service. |
| Beneficiaries or estate (i.e. in cases of no existing pension partner or where they have waived their right to the benefit): | Commuted value of the benefit plus any excess contributions on post-1991 service. |
Pre-1992 Service
Not Vested (Fewer Than Five Years of Service) and Were Contributing to the Plan
If a member is contributing as a non-vested member when they pass away, their pension partner will be entitled to a refund of double their regular MEPP contributions and interest, plus a refund of any buyback contributions and interest.
If a member does not have a pension partner (or if any pension partner has completed a pre-retirement death waiver ), any dependent minor children beneficiaries will be entitled to the same benefits.
Other beneficiaries will be entitled to a refund of the member’s regular contributions and interest.
If no beneficiary information is provided to us, the benefit will be paid to the member’s estate.
| Relationship | Benefit |
|---|---|
| Pension partner (or any dependent minor children beneficiaries, where there is no surviving pension partner, or if the pension partner has completed a pre-retirement death waiver): | Refund of double the member's regular contributions and interest, plus refund of buyback contributions with interest. |
| Beneficiaries other than pension partner or eligible dependent minor child(ren): | Refund of the member's contributions with interest. |
Not Vested and Not Contributing to the Plan
If a member is not vested and not contributing to the Plan when they pass away, their pension partner will be entitled to a refund of their MEPP contributions with interest.
If a member does not have a pension partner (or if their pension partner has completed a pre-retirement death waiver), the member’s chosen beneficiaries will be entitled to the member’s MEPP contributions with interest.
If a member does not have a beneficiary on file with MEPP, the benefit will be paid to the personal representative of the member’s estate.
Vested (Five or More Years of Service)
The member’s pension partner will be entitled to a monthly lifetime pension or a refund of double the member’s contributions plus any buyback contributions, with interest.
The monthly pension will continue even if the pension partner is working, re-marries or moves outside of Canada.
If a member does not have a pension partner (or if their pension partner has completed a pre-retirement death waiver), any beneficiaries who are dependent minor children, will be entitled to a refund of double the member’s contributions plus buyback contributions, with interest. Any other beneficiaries will be entitled to a refund of the member’s contributions, with interest.
If a member does not have a beneficiary on file with MEPP, the benefit will be paid to the member’s estate.
| Relationship | Benefit |
|---|---|
| Pension Partner may choose either (a) or (b) unless a pre-retirement death waiver was completed | (a) Pension for life. or (b) Refund of double the member’s contributions with interest, plus refund of all buyback contributions and interest. |
| Dependent minor child beneficiaries, where there is no surviving pension partner, or if the pension partner has completed a pre-retirement death waiver | Refund of double the member’s contributions with interest, plus refund of all buyback contributions and interest. |
| Beneficiary (other than Pension Partner or eligible dependent minor children) or estate | Refund of the member’s contributions with interest. |
Beneficiary Information
Any death benefits payable to beneficiaries after a member’s death will be made according to the most recent information. It is important to keep personal and beneficiary information current at all times to ensure a member's wishes are honoured.
Members can review their beneficiary information on their annual Pension Highlights or online in Your Pension Profile.
Members can make changes to their beneficiaries online in Your Pension Profile or by completing the Designation of Beneficiary(ies) form.