If you die before retirement (and you have not already withdrawn your pension due to terminal illness), your beneficiary will receive a death benefit from the Plan. The death benefit will be paid as a lump sum amount equal to the value of your accrued monthly pension at the date of your death. This lump sum value is calculated considering your age and the prescribed interest rate in effect at that time.
Keep in mind that the amount of your death benefit depends partly on your years of Plan Membership and whether you are a Member in Good Standing of the IBB at the time of your death. If you are not a Member in Good Standing at the time of your death, the death benefit payable will be the same as the Commuted Value. It is also closely tied to interest rates that can go up or down. This means that the actual death benefit paid from the Plan could be higher or lower.
Your beneficiary could either:
After retirement, the amount of any death benefit will depend on the pension payment option you choose when you retire.
Your death benefit from the Boilermakers' National Pension Plan (Canada) is paid in addition to any life insurance that you may have, and any CPP survivor benefits for which your family or estate may qualify.
Eligible Members are entitled to the following Life Insurance Benefit, which is payable to your beneficiary upon your death.