Disability pensions under the Québec Pension Plan
A clientele that has changed over time
A greater number of beneficiaries
Since payment of the first disability pension in 1970, the number of beneficiaries has continually increased. From less than 2000 in the first year, there are now almost 70 000 today. This increase has occurred in stages, each characterized by particular circumstances.
From 1970 to 1984: the beginning
The early period extended until the mid-1980s. During that period, there was a rapid increase in the number of beneficiaries. While in 1970 there were 1 766 new beneficiaries, the number grew to 11 480 in 1984, the year in which changes were made to the eligibility requirements.
In 1984: easing the eligibility requirements
The grea test number of new beneficiaries, reached in 1984, can be explained in part by the relaxed eligibility requirements for a disability pension granted to persons between age 60 and 64. Previously available only to persons unable to unable to do any type of substantially gainful work, the disability pension could, as of 1984, be given to persons in this age group unable to do their usual work because of their state of health. Since that time, close to a third of the disability pensions of persons age 60 to 64 are granted according to the relaxed definition.
Between 1985 and 1991: stabilization
Between 1985 and the beginning of the 1990s, the number of beneficiaries stabilized at close to 50 000. The annual number of new beneficiaries thus decreased (approximately 7 800 in 1989, 1990 and 1991).
After 1991: an increase in the number of female beneficiaries
Since 1992, the number of new beneficiaries has increased continuously, mainly because of the greater number of female beneficiaries. At the beginning of the 1970s, the majority of beneficiaries of a disability pension were male (in 1970, 90% of new beneficiaries were men and only 10% were women). Over the years, the difference decreased, but starting in 1992, the proportion of women beneficiaries increased more rapidly. Thus, in 2003, 58% of new beneficiaries were men and 42% women.
This increase in the proportion of women among the beneficiaries is attributable to their growing participation in the labour force since the Plan started. There are now more women contributing sufficiently to the Plan and thus eligible for a disability pension. Since their pension generally starts at a younger age and their life expectancy is greater, they receive a pension for a longer period of time than men, which also increases their proportion among the beneficiaries.
The acceptable causes of disability have also changed, which has led to significant changes in the makeup of the beneficiaries, which will be explained in the next article in this issue of Liaison RRQ-Retirement Experts.