FSAC urges the government to increase CPP death benefit, aiding those struggling with funeral costs
The Funeral Service Association of Canada (FSAC) is urging the federal government to enhance the Canada Pension Plan (CPP) death benefit to aid low-income Canadians struggling with the costs of end-of-life services.
Citing 2022 data from Statistics Canada, which shows over 10 percent of Canadian seniors live at or below the poverty line, the FSAC's plea is aimed at addressing the financial hardships many faces when arranging dignified funerals.
This call to action was detailed in a report by CityNews, where FSAC President Jeff Weafer expressed concern over the inadequate support provided by the current death benefit.
The CPP death benefit, intended as a one-time payment to the estate or eligible individuals of a deceased CPP contributor, requires the deceased to have made contributions to the CPP for a certain duration or to fulfill other eligibility criteria.
However, Weafer notes a significant issue: the benefit amount was reduced from just over $3,500 to $2,500 in the late 1990s and has since remained "frozen in time," not keeping pace with inflation or the rising cost of living.
Weafer told CityNews, "It’s for those working Canadians who worked throughout their lifetime, paid into Canada Pension, and, specifically, those who find themselves with less means later in their life.
They’re hoping to rely on a death benefit or a Canada Pension benefit that our society and our government had guaranteed. They’re shocked to find out that it’s just $2,500, frozen in time for 25 years."
This stagnation is particularly problematic given the increasing cost of living and the growing issue of homelessness in Canada. A mere $2,500 does little to cover funeral expenses, leaving many families unable to afford a proper farewell for loved ones who contributed to building Canadian society.
Weafer's comments underscore the broader societal implications of how Canada treats its most vulnerable, especially seniors, arguing that ensuring dignity in death is a measure of a society's values.
The FSAC insists that every Canadian deserves a dignified funeral, regardless of their financial status during their lifetime.
With inflation continuing to exacerbate personal financial strains, the FSAC highlights the urgent need for the government to reevaluate and increase the CPP death benefit.
Funeral professionals across Canada frequently witness the difficulties families face in affording funeral services, often stepping in to assist with navigating government support, insurance, and pension options to provide some relief during these challenging times.
