Supplementary Death Benefit
The Supplementary Death Benefit (SDB) is a form of decreasing term life insurance. Participation is mandatory for the majority of active members who contribute to the Public Service Pension Plan and coverage begins at the same time as becoming a member of the Public Service Superannuation Act (PSSA).
Coverage is equal to twice the participant's final annual pensionable salary rounded up to the next highest multiple of $1000. Contributions are at a rate of $0.15 a month per $1000 of coverage and decrease 10% annually starting at age 66. Employees retain a minimum $10,000 coverage for life after contributions cease.
The death benefit is a one-time, tax-free, lump-sum payment payable to the employee's named beneficiary upon their death. Their chosen beneficiary may be their estate, a person aged 18 or over at the time of designation, as well as a charitable, benevolent, religious or educational institution. In the event no beneficiary is identified by name, the death benefits will be paid to the deceased member's estate.
How to name or modify your beneficiary
You must complete the PWGSC 2196 - Naming or Substitution of a Pension Beneficiary and forward it to the Pension Centre. It is recommended you keep a copy for your records. The last valid designation form signed and received by the Pension Centre before your death will be the form used to make the death benefit payment.