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.
If you continue working and are receiving a retirement pension from the Régie, you must contribute to the Plan once your employment earnings exceed the basic exemption of 3 500 $. The contributions you make will give you entitlement to a pension increase known as the retirement pension supplement.
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 10,50% of your gross wages (up to a maximum of 53 600 $ in 2015).
- If you are a salaried worker, you pay half of that rate, (5,25%), and your employer pays the other half.
- If you are self-employed, you have a contribution rate of 10,50% 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 ensure the Plan's financial balance.
- If you start receiving your retirement pension at age 65, it will replace around 25% the earnings on which you contributed.
- Following your death, your spouse will receive an amount equal to the average earnings recorded under your name.
- Certain months can be excluded from your contributory period, which could give you entitlement to a retirement pension, or even increase the amount of the pension, if they are:
- Months during which you received a disability pension under the Québec Pension Plan or the Canada Pension Plan or an unreduced income replacement indemnity from the Commission de la santé et de la sécurité du travail (CSST)
- starting in 1966, the months for which you received Québec family benefits or a Canada Child Tax Benefit in your own name for a child under age 7 or the months during which you were eligible for such benefits but none were payable
- months in which your earnings were lowest, up to 15% of your contributory period.
The Québec Pension Plan will always be there for you
The Plan is sustainable and profitable for all generations of Quebeckers, based on the information in the actuarial valuation as at 31 December 2012.
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.