Conditions of Service and Discipline Branch Column
Death gratuity after retirement

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Question: "I am retiring soon. I've paid off my residential mortgage and my children have grown up. I have no specific need for a lump sum (commuted pension gratuity), so I have decided not to take it and opted to take my monthly pension in full. Will my wife receive any benefit if I die early?"

Answer: If a pensionable officer dies after his retirement, his personal representative would be granted a death gratuity. The amount will be equal to the maximum commuted pension gratuity (25% for old pension scheme, and 50% for the new pension scheme) after deducting the amount of monthly pension and lump sum that the officer has already received.

For example:

Suppose the highest monthly salary of a New Pension scheme officer is $24,065. He has 450 months pensionable service. The maximum amount of commuted pension gratuity for the officer is $1,350,000 (50%). When he chooses not to take any of it (0%), his monthly pension is $16,000. Assuming that he unfortunately dies a year after retirement, his personal representative could be granted $1,158,000 as a death gratuity [$1,350,000 - ($16,000 x 12)].

If an officer has already received, by way of lump sum and pension payments, the maximum amount of commuted pension gratuity, then no death gratuity would be granted.