DEATH BENEFITS BEFORE RETIREMENT
On the death of a member before retirement, where the member is not survived by a spouse, a lump sum will be payable to the estate of the member. The amount of the lump sum will be the full actuarial value of the earned pension up to the date of the member’s death. This actuarial value is the same amount which the member could have transferred to a locked-in vehicle had the member terminated his membership in the Plan at that time. The lump sum amount is calculated as an approximation to the amount of money which would have been required to purchase a deferred annuity equal to the amount of the earned pension.
Where the deceased member is survived by a spouse, the lump sum calculations are first done as if the member was not survived by a spouse but then the lump sum is converted into an equivalent monthly pension which is to be paid to the spouse for the spouse’s lifetime. On written request from such a surviving spouse an amount equal to the lump sum may be transferred directly to a locked-in registered retirement vehicle in which case no pension would be paid from this Plan.
The spouse is the person defined as such under the British Columbia Pension Benefits Standards Act and the Income Tax Act.