In the Event of the Death of a Member of the NLTA

Introduction
No one likes to contemplate the death of a relative or friend. However, when this unfortunate event occurs, it is important for those closest to the deceased to know what is involved in settling the estate. This Infosheet outlines the NLTA policy on procedures in the event of the death of a member of the Association and gives additional information regarding benefits to which survivors may be entitled.

Information
Principals, teachers, other members, the NLTA Branch, etc., are requested to inform the Programs and Services staff of the death of a member.

Recognition
In recognition of the member’s service to education and to the Association, a professional obituary supplied by the family or colleagues may be published in The Bulletin. The obituary is limited to 250-300 words, and a small picture may be included. Deceased members will be recognized at the NLTA Biennial General Meeting by the observance of one minute of silence.

Assistance to Survivors
The NLTA staff will assist in the retrieval of benefits to the estate (NLTA group insurance, Canada Pension, severance pay, teachers’ pension, etc.) where applicable. Some benefits are controlled in disbursements through the provisions of a personal will. However, there are other benefits which may be designated.

(i)   Life Insurance
The NLTA Group Insurance Plan provides for six life insurance options for members/spouses:

• A1 – Basic Life Insurance;
• A2 – Voluntary Life Insurance (Member);
• A3 – Basic Accidental Death and Dismemberment Insurance;
• A4 – Voluntary Accidental Death and Dismemberment Insurance;
• A5 – Voluntary Life Insurance (spouse); and
• Post-65 Life Insurance

Options A1 and A3 are part of the basic plan co-funded with government and each provides benefits of twice the annual salary or pension up to age 65. The benefits under options A2, A4 and A5 will depend upon the amount of insurance purchased by the member. The Post-65 Life Benefit is $15,000. The naming of a beneficiary, both primary and contingency beneficiaries, for all life insurance policies is extremely important.

(ii) Health and Dental Insurance
All members are automatically enrolled in Option B – Health Insurance and B2 – Dental Insurance of the NLTA Group Insurance Plan with the option to opt out. The surviving partner or eligible dependents may continue coverage under these options. Surviving spouses should contact the Plan Administrator: Johnson Inc., 10 Factory Lane, St. John’s, NL A1C 6H5; Tel: 709-737-1528 or 1-833- 772-16582; Fax: 709-737-1021; www.johnson.ca/nlta.

(iii) Teachers’ Pension Death Benefits

(a) Before Retirement (at least 5 years of pensionable service)
In the event of pre-retirement death of a member, the surviving spouse/partner is called the principal beneficiary and has the option to receive: (1) a monthly survivor pension equal to 60 percent of the member’s accrued pension, including the bridging benefit (which will cease on the first day of the month following the month in which the member or Deferred Pensioner would have reached 65 years of age), payable until the surviving spouse’s death; or (2) to receive a lump sum payout based on commuted value of the pension. Surviving spouses/partners should consult a financial planner prior to exercising their option.

Where there is no surviving spouse/partner (principal beneficiary) entitled to a survivor benefit, any Dependent Children are entitled to share in the 60% survivor pension for the eligible period under the Plan, never to exceed the annual pension amount of what would have been paid to the Principal Beneficiary.

If there are no Dependent Children, any named Other Dependents, who meet the eligibility criteria, are entitled to the survivor pension for the eligible period under the Plan, never to exceed the annual pension amount of what would have been paid to the Principal Beneficiary.

If there is no surviving spouse/partner, no Dependent Children or Other Dependents, the Designated Beneficiary would be entitled to the Commuted Value of the member’s pension, calculated at the date of death, less the actuarial value of other benefits.

If there are no beneficiaries applicable or named, any remaining amounts will be paid to the member’s estate. Members are advised to contact the Teachers’ Pension Plan Corporation for advice on selecting beneficiaries according to their individual circumstances.

(b) After Retirement
If a pensioner dies, leaving a surviving spouse or partner, a survivor pension equal to 60 percent of the teacher’s actual pension, including the bridging benefit (which will cease on the first day of the month following the month in which the member would have reached 65 years of age), is payable to the surviving spouse until the surviving spouse/partner’s death.

In the event of no surviving spouse or the death of the surviving spouse, the survivor benefit shall be paid to any surviving children under the age of 18, or under the age of 24 while they are in full-time post-secondary school attendance.

In the case of a pensioner who dies leaving no surviving spouse or dependent children or designated other dependents, pension payments cease. If the amount which the pensioner has received in benefits is less than the total amount of contributions plus interest paid by the pensioner, the difference is paid to the designated beneficiary(ies) named by the member or to the estate of the deceased in accordance with the Teachers’ Pension Plan Text.

In the case of a member who does not have a designated beneficiary (no spouse/partner, dependent children, or designated other dependent entitled to a survivor benefit), the member may designate one or more named beneficiaries.

(c) Designated Beneficiary
In the case of a member who does not have a designated beneficiary (no spouse/partner, dependent children, or designated other dependent entitled to a survivor benefit), the member may designate one or more named beneficiaries.

For more information on teachers’ pensions, view Infosheet Number 3 – The Teachers’ Pension Plan or contact the Teachers’ Pension Plan Corporation, 130 Kelsey Drive, Suite 101, St. John’s, NL A1B 0T2; Tel: 709-793- 8772 or toll free: 1-833-345-8772; Fax: 709-793-4055; email: memberservices@tppcnl.ca.

(iv) Canada Pension
The Canada Pension Plan provides two benefits:

1. a maximum $2500 lump sum death benefit if the contributor meets the minimum qualifying requirements; and
2. a survivor’s benefit which includes a monthly pension payable to the surviving spouse and monthly benefits for the dependent children of the deceased contributor.

The necessary information and application forms may be obtained from:

1. a funeral director;
2. Service Canada at www.servicecanada.gc.ca.

(v) Severance Pay
Upon the death of an active member, the collective agreements provide for the payment of severance pay to the estate provided the member has not already received an early payout. The amount is based on two percent per year of service to a maximum of 40 percent of the member’s annual salary on March 31, 2018, provided other provisions of the appropriate articles are met.

(vi) Salary
When an active member dies, the member’s salary is payable to the estate to the end of the month in which the member dies. Furthermore, that portion of the member’s annual salary which has been held back for salary during the summer months will also be reimbursed.

For salary and severance pay information, contact:
Teachers’ Payroll Division, Department of Education, PO Box 8700, St. John’s, NL A1B 4J6; Tel: 709-729-2996; payroll@gov.nl.ca.