Rapport actuariel modifiant l'Analyse actuarielle du Régime de rentes du Québec au 31 décembre 2006
(Actuarial update to the Actuarial Report of the Québec Pension Plan as at 31 December 2006; French only)
Purpose of the report
The report is related to the measures provided for in the Act to amend the Supplemental Pension Plans Act, the Act respecting the Québec Pension Plan and other legislative provisions, passed in June 2008. 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 2006. 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.
The new legislation provides for several changes to the Plan, only one of which has a significant impact on the Plan's financial progression. That measure provides that all retirement pension beneficiaries who work and contribute to the Plan will be able to obtain a pension supplement based on their contributions.
As of 2009, the supplement will replace the pension recalculation that has existed since 1998. The new calculation will apply to all working beneficiaries, who will receive a supplement even if they are already receiving the maximum pension.
Changes to benefits
The changes to the Plan would have no effect on total contributions because contributions will still be obligatory for all workers. However, the total benefits paid will increase, mainly due to the greater number of individuals receiving pension increases.
Changes in the reserve and the steady-state contribution rate
The increase in benefits has an impact on the Plan's projected reserve and the steady-state contribution rate. According to projections that take into account the changes, the Plan's reserve will be totally depleted in 2049 rather than in 2051, as projected in the Plan's most recent actuarial analysis.
The steady-state contribution rate would be increased by 0,08 percentage points, from 10,54% to 10,62%. The difference between the steady-state contribution rate and the contribution rate of 9,9% provided for under the Act respecting the Québec Pension Plan would therefore increase from 0,64 percentage points to 0,72 percentage points. Changes to the Plan remain necessary in order to maintain its long-term financial stability in view of the effects of the measure provided for under the new legislation.
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