How does a workplace pension's death benefit differ from an RRSP's treatment on death in Ontario?

An RRSP is an individual contract, so you can generally name any beneficiary you choose, and on your death the proceeds pass directly to that person outside your estate and outside probate. Federal tax rules also allow the funds to roll over on a tax-deferred basis to a spouse, or in some cases a financially dependent disabled child or grandchild, rather than being taxed immediately.

A workplace pension is different because it's governed by the specific plan's terms and whichever pension legislation applies to it, and many pension plans are required to provide a spouse with a survivor pension or death benefit that can't simply be redirected to someone else by naming a different beneficiary, without the spouse's own consent. In other words, an RRSP beneficiary designation is largely up to you, while a pension's survivor entitlement is often built into the plan structure itself and protected for a spouse.

Because pension rules vary by plan and which pension legislation applies to your specific employer, check your plan's member booklet or ask the plan administrator directly rather than assuming it works the same way as an RRSP beneficiary designation.