There are two occasions when you will be asked to name a beneficiary for your SPP account: when you join SPP and when you select an annuity at retirement. You may name either a person(s) or your Estate as beneficiary. Your beneficiary can be changed at any time by notifying SPP in writing.

Some factors you may wish to consider when naming a beneficiary are: If you name your spouse as beneficiary of your account, he or she will be able to transfer it into their own SPP account; transfer it to a retirement savings option at another financial institution; or receive it as a direct payment, less withholding tax.

• If you name someone other than your spouse, the funds will be paid directly to him/her, less withholding tax.
• If you are naming more than one person as your beneficiary, it is important that you indicate what share of your account each beneficiary is to receive.
• When your estate is the beneficiary, the funds are paid to the estate, less withholding tax. It is then part of the money used to settle debts of the estate and the balance is distributed according to the terms in your will.
• SPP cannot pay benefits directly to a minor child.

Some examples of beneficiary designations are as follows:

• Where one beneficiary is named: Mary Jane Smith, my wife
• Where more than one beneficiary is named: Mary Jane Smith, my mother and William John Smith, my father, equally or to the survivor.
• Where beneficiaries are allowed fractional amount(s): Mary Jane Smith, my wife, two-thirds; William John Smith, my son, one-third. The share of a deceased beneficiary shall be paid to the survivor.
• Where an alternative beneficiary is named: Mary Jane Smith, my wife, if living, otherwise to William John Smith, my son.

Withholding tax is determined using a schedule prescribed by Canada Revenue Agency (CRA). The current schedule is shown below.

Account Balance	Rate of Tax Withheld
$5,000 or less	10%
$5,001 - $15,000	20%
$15,001 and over	30%

For example, if your account balance is $5,500 when you die and your beneficiary chooses to receive the payment directly, he or she will receive $4,400 and $1,100 of withholding tax will be sent to CRA. The beneficiary will receive a T4A to file with his or her income tax return and may be eligible for a refund of all or part of the tax paid.