Deuxième rapport actuariel modifiant l'Analyse actuarielle du Régime de rentes du Québec au 31 décembre 2009

(Second actuarial update to the Actuarial Report of the Québec Pension Plan as at 31 December 2009; French only)

Purpose of the update

This actuarial report follows the tabling in November 2011, of the bill entitled An Act to amend the Act respecting the Québec Pension Plan and other legislative provisions. Its purpose is to assess the effects of the amendments provided for by the Act on the projections in the actuarial report as at 31 December 2009. Under the Act respecting the Québec Pension Plan, an actuarial report must be prepared when a bill proposing changes to the Plan is under study at the National Assembly.

Main measures provided for in the bill

The bill provides for a number of measures aimed at modernizing the Québec Pension Plan. The main measures are:

• the elimination of the obligation to have stopped working to receive a retirement pension under the QPP as of age 60;
• a decrease in the maximum retroactive period to 12 months (from 60 months) for a retirement pension beginning after age 65;
• the requirement to have recently worked to be eligible for a disability pension in cases that meet to the less stringent definition of disability applicable as of age 60;
• coverage for total disability for contributors ages 60 to 65 who are receiving a retirement pension from the QPP;
• an increase in the orphan's pension;
• the transfer of a percentage of the retirement pension supplement to the surviving spouse;
• a death benefit corresponding to the amount of contributions paid, where contributions are between 500 $ and 2 500 $;
• a decrease in the number of years of contribution required to be eligible for survivors' benefits for certain beneficiaries who experienced periods of disability during their contributory period;
• taking into account the years of contribution after a retirement pension has begun in order to determine entitlement to survivors' benefits;
• a change to the definition of a beneficiary's child.

Impact on benefits, the reserve and the steady-state contribution rate

With the bill, total benefits increase slightly compared to those provided for under the actuarial valuation of May 2011 (a 0,2% increase by the end of the projection period). With the amendments provided for in the bill, the reserve will remain at a level greater than three times the annual cash outflows by 2050. By 2060, the reserve will still be 2,7 times the annual cash outflows. Therefore, the bill only has a marginal effect on the Plan's disbursements. The Plan's reserve remains positive throughout the projection period.

The bill's measures entail an overall increase of 0,02% to the steady-state contribution rate compared to the rate determined in the actuarial valuation of May 2011. The amendments therefore increase the steady-state contribution rate from 10,79% to 10,81%.