Retirement Benefits
Last updated on August 18, 2021If you are awarded benefits for permanent disability, you will be entitled to a Retirement Benefit at age 65.
At age 65, WorkSafeBC will stop paying your Permanent Disability benefits and pay you a one-time only Retirement Benefit.
How does WorkSafeBC calculate my Retirement Benefit?
When the WorkSafeBC first starts to pay you Permanent Disability benefits, it will contribute money to a special fund for you. In addition to your monthly permanent disability benefits, the WorkSafeBC will pay an amount of money equal to 5 percent of your monthly permanent disability benefits into this special fund.
WorkSafeBC will invest this money. The investment profits will be added to your fund. When you turn 65, you will receive all the money in this fund as a Retirement Benefit.
Can I contribute to this fund if I want?
Yes, you can.
When WorkSafeBC awards you permanent disability benefits, it will ask you if you want to contribute a portion of your benefits, each month, into the fund. You can contribute up to 5 percent of your monthly benefits into the fund. Your monthly contribution will be added every month to the fund.
If you change your mind, and want to stop or reduce your payments to the fund, WorkSafeBC will ask you to confirm this in writing. However, WorkSafeBC will not allow you to make any more changes in the future.
Before contributing additional amounts to the retirement benefit, you should be aware that once it is payable the retirement benefit is not protected from creditors in the same way as your monthly pension payments.
What happens if I die before age 65?
When the retirement benefit fund is first established, WorkSafeBC will ask you to name a person you want the money in the fund to be paid to, if you die before you turn 65. This person is your beneficiary. You must name your beneficiary in writing.
If you want to change your beneficiary, you must tell WorkSafeBC in writing.
If you die before you turn 65, WorkSafeBC will pay the money in the retirement fund to your beneficiary. If you did not choose a beneficiary, WorkSafeBC will pay the Retirement Benefit to your estate.
Investment and Annual Statement
WorkSafeBC may decide to manage your retirement fund itself or may ask a financial institution or bank to manage the fund. WorkSafeBC will make all decisions about the fund, including how it will be invested.
WorkSafeBC must send you a statement, every year, about your retirement fund. The annual statement will include information about:
- WorkSafeBC’s contributions to the fund;
- your contributions to the fund;
- income or loss from investment; and
- total money in the fund.
This factsheet has been prepared for general information purposes. It is not a legal document. Please refer to the Workers Compensation Act and the Rehabilitation Services and Claims Manual Volume I and Volume II for purposes of interpretation and application of the law.