How will your pension be calculated?

• To find out the amount of employment earnings recorded under your name and to obtain an estimate of your retirement pension, consult your Statement of Participation on line.
• The amount of your retirement pension is 25% of the average monthly earnings on which you contributed to the Plan, if you file your Application for a Retirement Pension at age 65. Also, the maximum monthly retirement pension is 986,67 $ in 2012. If you are under age 65, you will receive a reduced pension for the duration of your retirement. Conversely, your pension will be greater if you begin receiving it after age 65.
• The payment conditions vary depending on whether payment begins before or after your 65th birthday. If your pension begins after your 65th birthday, you could be entitled to a retroactive pension payment covering a maximum of 60 months.
• Certain months in which your earnings were low or nil can be deducted from the calculation of the average, which raises your average monthly employment earnings and increases the amount of your pension.
• If you are divorced or separated and there has been a partition of earnings recorded under the Québec Pension Plan, it is taken into account in the calculation of your pension.
• Your retirement pension is taxable and is adjusted each year in January on the basis of the increase in the cost of living.
• To reduce income taxes payable, you can share your retirement pension with your spouse.
• Payment of your pension is not automatic. You have to apply for it.