Principal Beneficiary (previously called Survivor) Benefits
Principal Beneficiary (previously referred to as a survivor): MUNPA uses this term to identify a pensioner who is the surviving principal beneficiary of a deceased MUN pensioner or a MUN employee who died prior to retirement. The latest MUN Pension Plan Summary (2017) defines a principal beneficiary as the spouse of an employee, or where the employee has a cohabiting partner, the employee's cohabiting partner. The Pension Plan Summary contains definitions for spouse and cohabitating partner.
Automatic Member of MUNPA: When a principal beneficiary begins to receive their MUN pension benefits, they automatically become a member of MUNPA. Like their loved one, they have access to all services, events, and activities provided by MUNPA.
Text from the 2017 Summary:
Pre-retirement death benefit
Where an employee, who is not vested, dies, a refund of his or her contributions plus interest will be paid to his or her surviving principal beneficiary. If there is no surviving principal beneficiary, the refund will be paid to the guardian of any dependent children under the age of 18 years. If there is no surviving principal beneficiary and no dependent children, the funds will be paid to the deceased employee's estate.
Where an employee, who is vested, dies, the following will apply:
i) If vested in respect of service performed after December 31, 1996 but not vested in respect of pre-1997 service, a refund of pre-1997 contributions plus interest will be paid as described above. For service performed after December 31, 1996, the Plan provides a 60% survivor's allowance payable to the surviving principal beneficiary.
ii) If vested in respect of all service a survivor's allowance equal to 60% of the pension earned by the employee may be paid to the surviving principal beneficiary. Upon the death of a surviving principal beneficiary, the survivor's allowance may be paid to the guardian of any dependent children under the age of 18. If there is no surviving principal beneficiary, the pension plan will pay to the deceased employee's estate a death benefit equal to the commuted value of post 1996 service plus contributions and interest in respect of a pre-1997 service.
Post-Retirement Death Benefit
Where an employee dies while in receipt of a pension, a survivor's allowance equal to 60% of the pension that was being paid to the employee at the date of his or her death will be paid to the surviving principal beneficiary or dependent children, if applicable.
The age limit for dependent children is increased to 24 while the child is in full-time attendance at a school or post-secondary institution.