Retirement pension supplement
Are you already receiving your retirement pension under the Québec Pension Plan?
You can work and continue to receive your pension. However, you must contribute to the Plan once your earnings exceed the 3 500 $ basic exemption.
These contributions entitle you to an increase in your retirement pension: the retirement pension supplement. No application needs to be filed because the Régie will automatically pay it.
- The supplement is added to your pension for the rest of your life.
- The supplement is payable as of 1 January of the year following the one in which you made contributions.
- The total supplement for the year is 0,5% of the earnings on which you contributed during the previous year.
- Your pension increases even if you are already receiving the maximum regular pension payable.
- Your pension continues to increase on a yearly basis as long as you continue 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 2009, 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 2010.
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...
If you are receiving a retirement pension under the
Canada Pension Plan and you work in Québec, you could receive a retirement pension supplement under the Québec Pension Plan. If you contribute to the Plan, the
Régie will automatically pay you the supplement without you having to apply for it. The amount will be equal to 0,5% of the earnings on which you contributed to the Plan in the previous year.