What is the Québec Pension Plan?
The Québec Pension Plan is a compulsory public insurance plan. Its purpose is to provide persons who work in Québec (or have worked in Québec) and their families with basic financial protection in the event of retirement, disability or death.
The Plan is funded by your contributions and those of your employer. To contribute to the Plan, you must be 18 years of age or over and have an annual income over 3 500 $. If you are a salaried worker, your contributions are deducted from your pay, as indicated on your pay stub.
You stop making contributions when you definitively leave the labour force and retire.
To find out the employment earnings amounts recorded under your name for the Québec Pension Plan, consult your Statement of Participation. The Régie sends you a Statement every 4 years. It is an excellent planning tool, and it is simple and free.
Contributions: payment and deductions
- The contribution rate to the Plan represents 10,35% of your gross wages (up to a maximum of 52 500 $ in 2014).
- If you are a salaried worker, you pay half of that rate, (5,175%), and your employer pays the other half.
- If you are self-employed, you have a contribution rate of 10,35% of the part of your employment earnings subject to contribution.
The contribution rate will increase by 0,15% a year until it reaches 10,80% in 2017. As of 2018, an automatic mechanism will be implemented to align the contribution rate with the steady-state rate.
- The retirement pension represents 25% of the average earnings recorded under your name.
- Following your death, your spouse will receive an amount equal to the average earnings recorded under your name.
- 15% of the years in which your earnings were low or nil are excluded from the calculation of earnings recorded under the Plan.
- The years in which you did not work will likely not be taken into consideration in the calculation of your retirement pension.
- A temporary absence from the labour force to care for your child is not necessarily taken into account in the calculation of your pension.
- The periods in which you were eligible for child assistance for a child under age 7 are excluded from the calculation of your retirement pension.
- The months for which you received an unreduced income replacement indemnity from the Commission de la santé et de la sécurité du travail (CSST) can be excluded from your contributory period.
- The years in which you worked outside Canada can be counted in determining your eligibility for a disability pension or survivors' benefits.
- The Gouvernement du Québec has social security agreements with 30 countries. Under such an agreement, you may be able to obtain a foreign retirement pension, a disability pension, or a survivors' pension.
- The amount of your pension that you will receive at retirement can be calculated in advance.
The Québec Pension Plan will always be there for you
The Plan has a reserve to deal with situations and unexpected events specific to our society, such as aging of the population and economic fluctuations.
The Régie closely watches the Plan
- An actuarial valuation is carried out every 3 years to determine the Plan's ability to deal with its future financial obligations.
- A public consultation is held every 6 years to allow citizens to propose amendments to the Plan.