Retirement pension supplement
Workers who are already receiving a retirement pension under the Québec Pension Plan can work and continue to receive their pension. However, they must contribute to the Plan once their earnings exceed the 3 500 $ basic exemption.
These contributions entitle workers to an increase in their retirement pension: the retirement pension supplement. No application needs to be filed because the Régie will automatically pay it.
- The supplement is added to the person's pension for the rest of his or her life.
- The supplement is payable as of 1 January of the year following the one in which the person made contributions.
- The total supplement for the year is 0,5% of the earnings on which he or she contributed during the previous year.
- The pension increases even if the person is already receiving the maximum regular pension payable.
- The pension continues to increase on a yearly basis as long as the person continues to make contributions.
Important...
Even if the supplement is payable as of 1 January, it usually takes a few months before the Régie receives from Revenu Québec the information required to calculate it. The Régie will pay the amounts owing retroactive to 1 January.
Example
In 2008, Louise's retirement pension under the Plan was 750 $ a month. That year, she also had 22 700 $ in employment earnings. Once Revenu Québec provided that information to the Régie, we calculated her pension as follows: 19 200 $ (22 700 $ less the basic 3 500 $ exemption) × 0,5%. Louise's yearly pension therefore increased by 96 $ in 2009.
Part of that supplement was paid to her retroactively, and Louise's pension increased to 758 $ a month, in addition to annual indexation. In 2009, Louise continued to work and earned 17 900 $. In 2010, her pension will therefore increase by 72 $ and will continue to increase in this way for as long as Louise works.
Note that...
Workers who are receiving a retirement pension under the
Canada Pension Plan and who work in Québec could receive a retirement pension supplement under the Québec Pension Plan (QPP). If workers contribute to the QPP, the
Régie will automatically pay them the supplement without them having to apply for it. The amount will be equal to 0,5% of the earnings on which they contributed to the QPP in the previous year.