The Canada Pension Plan (CPP) death benefit is a one-time benefit paid to a deceased CPP contributor’s estate. It is not paid out automatically and must be applied for. This benefit serves mainly to help cover the deceased’s funeral expenses. There are also other CPP benefits that are paid upon the death of a CPP contributor, namely the CPP survivor’s benefit and the CPP children’s benefit.
How the CPP death benefit works depends on whether or not the deceased contributor has an estate.
If the deceased contributor has an estate, the will’s executor or the court-appointed administrator applies for the death benefit and should do so within 60 days of when the CPP contributor is deceased.
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If the deceased contributor does not have an estate, or if the executor or administrator has not applied for the benefit within 60 days of the death of the CPP contributor, additional individuals may apply for the benefit. They are prioritized as follows:
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To be eligible for the CPP death benefit, the deceased contributor must have contributed to the CPP for at least one-third of the years in which they were eligible to contribute to the CPP (but no less than 3 years), or at least 10 years.
For those in Quebec, the requirements are the same, except contributions are made to the Quebec Pension Plan (QPP) rather than the CPP. The application for the QPP death benefit must be filed within 5 years of when the QPP contributor dies.
The CPP death payment amount is $2,500.
The QPP provides a payment of $2,500 to those who satisfactorily paid into the QPP, as the CPP does not operate in Quebec. If the deceased lived in Quebec at the time of their death or lived outside Canada with their last province of residence being Quebec, applications for the death benefit should be made to Retraite Québec.
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To apply for the CPP death benefit, you must fill out form ISP1200 in order to submit your application. Your completed application must also include certified true copies of all required documents. Once you have the documentation you need, mail your application to your local Service Canada Centre.
It takes between 6 and 12 weeks for Service Canada to pay out the CPP death benefit once they receive your finished application.
The CPP death benefit is paid to an eligible CPP contributor’s estate and must be applied for. A similar benefit exists for those in Quebec and is known as the QPP death benefit. These benefits are mainly aimed at helping to pay for funeral expenses. The payment amount is $2,500. Besides the death benefit, the CPP survivor’s benefit and the CPP children’s benefit are available to support the deceased’s surviving spouse or common-law partner, as well as their children.
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Matthew joined the Loans Canada writing team in 2021 while was finishing up a Bachelor's degree at the University of Saskatchewan. It was there that he discovered his love of writing. His work has appeared in several publications, including the Canadian Student Review and NewEngineer.com. In his spare time, Matthew enjoys reading, geocaching, and spending time with his family and pets.
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