Last week we discussed 5 items to put on your funeral pre planning list. In keeping with this theme, I would like to share with you 4 Service Canada considerations with respect to budgeting the to-dos on your funeral pre-planning list.
I would recommend that you contact the Canadian Pension Plan and see how the changes introduced from 2011 to 2016 may give your more options as you make the transition from work to retirement. The Canadian Pension Plan (CPP) is administered through Service Canada and you may contact Service Canada or call them at 1-800-277-9914 toll free in Canada and the United States. If you require assistance for hearing or speech impairments, then call the TTY number at 1-800-255-4786. If you are calling outside of Canada or the United States, then please call 613-990-2244 and Service Canada will accept collect calls. Alternatively you could make an appointment and visit a Service Canada Centre.
Here are the 4 things I would encourage you to explore:
1. Your monthly CPP pension and how the changes may impact on your monthly pension.
2. The current amount of your Canadian Pension Death Benefit.
The maximum is $2,500.00. When a person dies, their executor completes and sends in an application for the Canada Pension Plan Death Benefit. The form number is ISP-1200-08-10E. The Canadian Government will inform you if an application is not accepted The reason is usually because the deceased did not contribute to the CPP that started in 1966. Conversely if an applicant is eligible, an application must be made to Service Canada. The agency will not automatically send the CPP Death Benefit. If there is a will, the Death Benefit cheque is payable to the estate of the deceased and usually takes a few months for the application to be processed.
3. The potential amount of any Survivor’s or Child(ren)’s Benefit(s).
This amount is based on the deceased spouse, partner or parents’ contributions to the CPP. When the deceased spouse, partner, or parent dies, their executor completes and sends in an application for the Canada Pension Plan Survivor’s Pension and Child(ren)’s Benefit(s). The form number is ISP-1300A-08-10E. Again, the Canadian Government will inform you if an application is not accepted. It will normally be for the same reasons stated above. Also, as above, if an applicant is eligible, an application must be made to Service Canada. The agency will not automatically send the CPP Survivor’s Pension or Child(ren)’s Benefit(s). One lady I worked with shared with me that her friend did not know about the Survivor’s Pension and her husband had died 3 years ago! Service Canada will accept an application at any time, review it, determine the eligibility and the most Service Canada will pay retroactively, is 11 months. Imagine the money this lady left on the table, not know about the Survivor’s Pension.
4. The Child(ren)’s Benefit(s) are funds payable to children of the deceased spouse or common law partner - under the ages of 18 years or to children between 18 and 25 years whom are attending school, college or university full-time. An application must be made annually for children 18 to 25 years, along with the supporting documentation that they are attending post secondary education full time. Again, Service Canada will accept an application at any time, review it, determine the eligibility and the most Service Canada will pay retroactively, is 11 months. Currently the Child(ren)’s benefit is around$200.00/ month.
Please note, the CPP operates throughout Canada, except in Quebec, where the Quebec Pension Plan (QPP) provides benefits. Changes to the CPP do not apply to the QPP. If you have inquiries regarding the QPP you may contact them here.
I trust that you can picture the sense of pride and relief you will feel, when you make contact with your funeral home of choice and Service Canada to consider and evaluate the advantages of preplanning and prepaying your eventual funeral arrangements. Just imagine being able to finally cross this item off your to-do list.
Please let me know if you have any questions, would like the application forms, or require assistance. You can leave a comment right here on the blog, or you can contact me here.
Until next time,