What is it?
The Supplementary Death Benefit (SDB) Plan came into force on January 1, 1955 and pays out a benefit on the death of the member to a designated beneficiary. The SDB Plan is compulsory for everyone who is a member of the Public Service Superannuation Act (PSSA).
When does your coverage start?
Coverage begins on the effective date on which an employee becomes a Public Service Pension Plan (PSPP) member. Members who have ceased to contribute to the PSPP because they have reached 35 years of service or are aged 71 or older are still covered by the SDB Plan. Otherwise, coverage continues either until the employee ceases to be employed by the federal government, or falls under one of the exclusion categories. Generally speaking, Schedule III Boards and Corporations are excluded; please check with your Human Resources contact for clarification as to what coverage is available if you are employed under Schedule III.
Note: members continue to receive coverage during the following periods:
a) Leave with pay
b) Leave without pay, authorized or unauthorized
d) Periods between seasonal employment, in the case of seasonal employees;
e) Periods between sessions of Parliament
f) When on strike.
When does your coverage end?
When you cease to contribute to the PSPP because you have been reappointed to a non-contributory position (e.g. as a part-time employee required to work less than 12 hours per week); when you cease to be employed with a public service Corporation or Board (they have their own insurance plans for their employees). Talk to your Human Resources contact if you are uncertain of your status.
Designating a beneficiary is not mandatory, but it is strongly recommended. To do so, a participant must complete the "Naming or Substitution of a Beneficiary" form, which can be found here.
How is the SDB Benefit calculated?
The basic benefit of an SBD Plan participant is based on the member’s salary. This includes any bonus or allowance that normally forms part of your salary for superannuation purposes. Talk to your Human Resources contact if you have concerns or questions regarding the calculation specific to your case.
Note: if you are a part-time or seasonal employee, please visit the Treasury Board website or talk to your Human Resources contact for more information.
Basic Benefit and member contributions
Effective September 14, 1999, the basic benefit is equal to double the employee's annual salary, rounded to the next multiple of $1,000.
Salary - $45,750 $45,750 x 2 = $91,500 - SDB Basic Benefit is $92,000
Salary - $58,500 $58,500 x 2 = $117,000 - SDB Basic Benefit is $117,000
Reduction of the SDB Benefit after age 65
On the 1st of April or the 1st of October following the participant's sixty-sixth birthday, the basic benefit is reduced by 10 %. If the Plan member continues to be employed, it is further reduced by the same amount each year thereafter until it reaches either $10,000. or one-third of his salary, whichever is greater.
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