How to Stop CPP and Old Age Security Payments After a Death in BC

After a death, the first weeks are full of calls and forms. One of the most important is stopping government pension payments, because money that keeps arriving after a death usually has to be paid back.

This article explains how to report a death to Service Canada, what happens to payments made after death, and how to return them. It also points out where you should confirm details about the CPP death benefit and survivor benefits, since those depend on the individual situation.

This article covers the law of British Columbia.

Report the death to Service Canada early

Service Canada should be notified of a death as soon as possible so that Canada Pension Plan (CPP) and Old Age Security (OAS) payments can be cancelled. The phone number is 1-800-277-9914.

Service Canada is one of the federal notices the Province lists as something to do soon after a death. The others are the Canada Revenue Agency, which helps avoid benefit repayment situations, cancelling a valid passport, and Immigration, Refugees and Citizenship Canada if the person held citizenship or permanent resident documents.

What happens to payments after the death

Benefits are payable for the month of death. All payments issued after the month of death must be returned.

This is why reporting quickly matters. The longer payments continue, the more there is to repay, and the estate or the family may be the ones dealing with it.

How to return money paid after death

How you return a payment depends on how it was made.

• Direct deposit: ask the bank to return the payment to the originator.
• Payment by cheque: send a Canadian-funds cheque payable to the Receiver General for Canada.
• Cheque already cashed: the money must be repaid.

If you are the executor or administrator, keep a record of what you returned and when. If you are not sure which payments fall after the month of death, ask Service Canada before sending anything.

The CPP death benefit and survivor benefits

Whether a CPP death benefit or a survivor benefit can be paid, who can receive it, and how much it is depend on the deceased person's contribution record and on who is applying. Confirm those details with Service Canada when you report the death.

If the Province is helping with funeral costs through the Burial or Cremation Supplement, the ministry starts cost recovery from the estate whenever possible, looking at items such as bank accounts, RRSP or RDSP funds, the CPP death benefit and insurance. If that applies to you, ask the ministry how any death benefit will be treated before you spend it.

If the person received Quebec Pension Plan benefits, you also need to contact Retraite Québec.

Related notices and records

When a death occurs in a Canadian province, the provincial vital statistics agency automatically notifies the SIN Program. For deaths in a territory or abroad, you must report it yourself.

A funeral home typically registers the death. Without a funeral home, the death can be registered at a Service BC location or with the Vital Statistics Agency once you have the Medical Certificate of Death from a coroner or physician. Some services require a certified copy of the death certificate, so it helps to order enough copies.

What to do next

• Phone Service Canada at 1-800-277-9914 and report the death.
• Ask the bank about any payment received after the month of death and have it returned.
• Tell the Canada Revenue Agency, and cancel a valid passport.
• Ask Service Canada about the CPP death benefit and any survivor benefit that may apply.
• Keep copies of letters, cheques and confirmation numbers for the estate file.

If the estate is complicated, or you are unsure whether you are responsible for repaying money, a lawyer or accountant can confirm your position.

Frequently asked questions