What Happens to CPP and OAS Payments When Someone Dies in BC?

After a death, family members often find that pension money keeps arriving in the deceased's bank account. It can be unclear whether to spend it, leave it, or send it back, and whom to call first.

This article explains the general rules for CPP and OAS payments after a death, the CPP death benefit and the CPP survivor's pension. Your situation may differ, so a lawyer can confirm how these rules apply to a particular estate.

This article covers the law of British Columbia.

Who to notify, and when

Service Canada must be notified of a death as soon as possible. From Canada or the United States, the number is 1-800-277-9914. Telling Service Canada promptly helps stop payments that would later have to be returned.

Notifying Service Canada about CPP and OAS is separate from telling the Canada Revenue Agency. The CRA looks after tax matters and certain benefits, such as the Canada Workers Benefit and the Canada Child Benefit.

Does the last payment have to be returned?

CPP and OAS benefits are payable for the month of death. All payments issued after the month of death must be returned.

For direct deposits, the bank is asked to return the money. If a payment came by cheque, it is returned by a cheque payable to the Receiver General for Canada.

• A payment for the month of death can generally be kept as part of what is owed to the person.
• A payment issued for any later month is returned.
• Keep the dates of any deposits so you can show what arrived and when.

The CPP death benefit

For deaths on or after January 1, 2025, the CPP death benefit is a basic $2,500, with a possible $2,500 top-up for a maximum of $5,000. The executor named in the will, or a court-appointed administrator, applies, ideally within 60 days of the death.

The deceased must have contributed to the CPP for at least one-third of the calendar years in the contributory period (and no less than 3 years), or for 10 calendar years. The top-up applies only if the deceased never received a disability benefit and there is no surviving spouse or common-law partner eligible for a survivor's pension.

If there is no estate, or the executor has not applied, the benefit may be paid to the person or institution paying the funeral expenses, then the surviving spouse or common-law partner, then the next of kin.

The CPP survivor's pension

The survivor's pension is payable to the legally married spouse or a common-law partner, meaning someone who lived with the contributor in a conjugal relationship for at least 1 year. You should apply as soon as possible, because back payments cover up to 12 months.

The amount is a flat-rate portion plus 37.5% of the retirement pension if the survivor is under 65, or 60% if the survivor is 65 or older.

A separated legal spouse may still qualify if the deceased had no common-law partner. That does not apply if a CPP credit split request for the same contributor was received and approved in January 2025 or later, unless the couple reunited and lived together for 12 months or more immediately before the death.

What to do next

• Call Service Canada as soon as possible to report the death.
• Do not spend any CPP or OAS payment issued after the month of death; arrange its return.
• Confirm who is the executor or administrator, since that person applies for the death benefit.
• Ask whether a surviving spouse or common-law partner should apply for the survivor's pension.
• Separately, tell the CRA about the death.

If the family disagrees about who should apply, or the estate is complicated, a lawyer can explain your options.

Frequently asked questions