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The Québec Pension Plan

The Québec Pension Plan is a compulsory public insurance plan for workers age 18 and over whose annual employment income is greater than $3500. 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, death or disability.

On 1 January 2019, the Québec Pension Plan was enhanced with an additional plan. The enhancement, which increases progressively, will help future generations of retirees improve their financial security in retirement. Their retirement pension will increase based on the number of years of contributions they make to the additional plan. The full effect of the changes will be achieved in roughly 40 years. Persons who are no longer contributing to the Plan because they stopped working before 1 January 2019 will not be affected by the changes.

The additional plan

The new plan increases

  • the income replacement rate (from 25% to 33.33%).
  • the pensionable salary, until it reaches 114% of the maximum pensionable earnings (MPE).

Contributions

The base plan is funded by contributions made by individuals who work in Québec and their employers

In 2020, the contribution rate for the Québec Pension Plan is 10.80%. That rate is split equally between the employer and the employee, and applies to earnings between the $3500 general exemption and $58 700, which is the maximum amount on which employees can contribute in 2020.

The additional plan is also funded by contributions made by individuals who work in Québec and their employers. In 2020, the contribution rate for Québec Pension Plan is 0.60%. That rate is split equally between the employer and the employee. Those contributions will gradually increase from 2019 to 2025.

Contributions are collected by Revenu Québec and managed by the Caisse de dépôt et placement du Québec.

What type of financial protection does the Plan offer?

Here are the different pensions and benefits that we can offer to persons and, in certain cases, their families, who have made sufficient contributions to the Plan: 

The additional plan increases the following pensions and benefits:

  • In retirement
    • retirement pension
    • retirement pension supplement
  • In the event of disability
    • disability pension
  • In the event of death
    • surviving spouse's pensions

To find out maximum amounts for pensions paid in 2020 

Québec Pension Plan Figures gives basic information on the Québec Pension Plan and the maximum monthly amounts of pensions paid under the Plan in 2020.

For Quebeckers working abroad

A worker and his or her spouse may be entitled to a retirement, disability, surviving spouse's or orphan's pension paid by a foreign country. However, the following conditions must be met:

A certificate of coverage for work abroad can be obtained from our Bureau des ententes de sécurité sociale (BESS).

Other useful link

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Practical corner

Enhacing the QPP for better financial security in retirement