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Survivor Income Benefit (SIB) - PART B

The Survivor Income Benefit is a form of life insurance that provides your survivor(s) with a monthly income rather than one lump sum.

In the event of your death, a non-taxable monthly benefit is payable to your Survivor Income beneficiary starting on the first day of the month following your death.

Amount of Monthly Survivor Income Benefit

The amount of the monthly benefit equals 25% of your Annual Earnings divided by 12.

For example:

Annual Earnings $53,761

Monthly Survivor Income benefit $1,120

(25% of $53,761 = $13,440, divided by 12 = $1,120)

If you die while you are disabled, the monthly benefit will be based on your Annual Earnings at the date you stopped receiving 100% of earnings from your employer.

Duration of the Survivor Income Benefit

•  If Your Beneficiary is Your Spouse - the benefit is payable for your spouse's lifetime. If your spouse dies before 10 years of payments are made, the benefit will continue to your spouse's estate for the balance of the 10-year period.

•  If Your Beneficiary is Other than Your Spouse - the benefit is payable for 10 years of payments. If your beneficiary dies before 10 years of payments are made, the payments for the balance of the 10-year period will continue to your beneficiary's estate.

For Survivor Income Benefit purposes, Spouse has the same meaning as in the Canada Pension Plan except that the Spouse is not required to be a person of the opposite sex.