Canada Pension Plan provides a single lump sum payment of $2,500 (since January 1, 2025) to an estate or to qualified survivors of deceased CPP investment holder. This advantage is aimed at helping with final and funeral expenses.
Eligibility and Majority of the Information
– The person must have paid at least one-third of their contributory period (at least 3 years) to the CPP, or have residence and social security agreement requirements.
– The death should have taken place on or subsequent to one January 1, 2019, to qualify at the maximum of 2500.
– It is first paid to the estate and in the event of no such, it can be paid to persons who have borne the cost of funerals, spouse, common-law partner or next of kin.
– Under some circumstances there is a top-up benefit of up to $5,000 in case of death that happens after December 31 2024.
How to Apply
– Use the Canada Pension Plan Death Benefit Application (Form ISP1200) and send it with a death certificate and other supporting documents.
– Processing would take about 6-12 weeks.
– The payments are made directly or through cheque to the applicant.
Summary Table: Canada Pension Plan Death Benefit 2025
| Feature | Details |
|---|---|
| Death Benefit Amount | $2,500 one-time payment (up to $5,000 top-up in some cases) |
| Contributor Requirements | CPP contributions for at least 1/3 of contributory period (min 3 years) |
| Eligibility Date | Death on or after Jan 1, 2019 for $2,500 benefit |
| Recipient | Estate, funeral payers, spouse/common-law or next of kin |
| Application Form | ISP1200 (Canada Pension Plan Death Benefit Application) |
| Processing Time | 6 to 12 weeks |
| Payment Method | Direct deposit or cheque |
FAQs
Q1: Who is eligible to the $2,500 CPP death benefit?
CPP contributors that are deceased and have adequate contribution experience; benefit is paid to the estate or survivors.
Q2: How do survivors apply?
Send Form ISP1200 and supporting documents through Service Canada.
Q3: What is the processing schedule?
Some 6-12 weeks post application.
Q4: Is it possible to improve the benefit?
Yes, until the death has taken place on or after December 31, 2024 with some conditions being met.
