Death

Death (before retirement)

If you die before retirement, your surviving spouse is entitled to receive a death benefit equal to the commuted value of your pension. Your spouse may choose to have the death benefit paid in one of the following forms:

a taxable lump sum payment of the commuted value;
a tax exempt transfer of the commuted value to a Locked-In Retirement Account (LIRA) or Registered Retirement Savings Plan (RRSP); or
a monthly lifetime pension, guaranteed for five years and their life thereafter, the actuarial value of which is equivalent to the commuted value.

If you do not have a surviving spouse, the benefit is payable as a taxable lump sum payment to your designated beneficiary or estate.

Prior to your death your spouse may waive their right to receive the pre-retirement death benefit by signing the Spouse’s Waiver of Pre-Retirement Survivor Benefit form. If SHEPP has a signed waiver on file, the death benefit would be payable to your beneficiaries or to your estate if no beneficiaries have been designated. Your spouse may revoke the waiver at any time before your death by delivering a written and signed notice of revocation to SHEPP. If the waiver is revoked, your spouse is again first in line for the death benefit, regardless of any other beneficiary you have designated.

Shortened Life Expectancy

In the unfortunate event that you become terminally ill before you are eligible for an unreduced pension, you may be able to access your pension benefit through SHEPP’s Shortened Life Expectancy Provision. To qualify, you must have a life expectancy of 24 months or less, and your spouse must willingly waive their entitlement to the survivor benefit. If approved, you will receive the commuted value of your pension benefit as a lump sum cash payment less the applicable income tax. You will remain a member of the Plan and continue to accrue a new pension benefit until your death or until you terminate employment with all SHEPP employers.

After Retirement

If you die after retirement, the payment of death benefits depends on the form of pension you elected at retirement. Refer to Choosing a Form of Pension for more information.

SHEPP Notification of Death Guide

The Notification of Death Guide provides step-by-step instructions for family members and executors to notify SHEPP of a member’s death. SHEPP will require the following documents:

Death Certificate or Funeral Director’s Statement of Death
Last Will and Testament (if required)
Call the employer to notify of the member’s passing.
Call SHEPP at 1.866.394.4440 to notify of the member’s passing.
Provide executor’s name, spouse’s name and/or beneficiary’s name, address and phone number.
Send the Death Certificate or Funeral Director’s Statement of Death to SHEPP.

SHEPP will review the record and advise of any further requirements over the phone on an individual basis, as each circumstance may be different.

Death (after retirement)

What happens to my pension if I die after retirement?

If you die after retirement, the payment of death benefits depends on the form of pension you elected at retirement. Only your spouse on date of retirement is entitled to Joint Life survivor benefits.

MEMBER WITHOUT A SPOUSE (OR MEMBER WHOSE SPOUSE HAS SIGNED A WAIVER)
Single Life pension guaranteed for 5 years:	Single Life pension guaranteed for 10 years:	Single Life pension guaranteed for 15 years:
paid for your life;guaranteed for 5 years;	paid for your life;guaranteed for 10 years;	paid for your life;guaranteed for 15 years;
MEMBER WITH A SPOUSE
Joint Life 60% guaranteed 0, 5, 10 or 15 years:	Joint Life 75% guaranteed 0, 5, 10 or 15 years:	Joint Life 100% guaranteed 0, 5, 10 or 15 years:
paid for your life;on your death, 60% continues for your surviving spouse’s lifetime;if you die before the end of the guaranteed term you select, the pension continues to your surviving spouse until the end of the term; then it reduces to 60% for your surviving spouse’s lifetime.	paid for your life;on your death, 75% continues for your surviving spouse’s lifetime;if you die before the end of the guaranteed term you select, the pension continues to your surviving spouse until the end of the term; then it reduces to 75% for your surviving spouse’s lifetime.	paid for your life;on your death, 100% continues for your surviving spouse’s lifetime;
If your spouse predeceases you, and you die before the end of the guaranteed term you select, your pension continues to your beneficiary until the guarantee expires.
If having survived you, your spouse dies before the end of the guaranteed term, the balance remaining on the guaranteed term of pension payments will be commuted and paid to your spouse’s estate.

How do I determine which form of pension I elected?

When you retired, SHEPP sent you a pension finalisation letter that explained the form of pension you chose. If you no longer have this letter, you may also sign in to SHEPPweb and select the Access my Pension Details page where you will find a detailed breakdown of your pension, including explanations of what will happen to your pension when you pass away, based on the form of pension you selected.

Visit the Getting Started with SHEPPweb page for more information on SHEPPweb. Contact SHEPP by phone if you are having trouble.

SHEPP Notification of Death Guide

The Notification of Death Guide provides step-by-step instructions for family members and executors to notify SHEPP of a member’s death. SHEPP will require the following documents:

Death Certificate or Funeral Director’s Statement of Death
Last Will and Testament (if required)
Call SHEPP at 1.866.394.4440 to notify of the passing.
Provide executor’s name, address and phone number.
Send the Death Certificate or Funeral Director’s Statement of Death to SHEPP.

SHEPP will review the record and advise of any further requirements over the phone on an individual basis, as each circumstance may be different.