June 2019 issue

True or false?

False. The age at which a person chooses to begin receiving a retirement pension under the QPP will have an impact on the amount of the pension for the rest of his or her life.

For example, a person who applies for a retirement pension before age 65 will see the amount decreased by 0.5% to 0.6% for each month between the starting date of the retirement pension and his or her 65th birthday. The reduction can reach 36% and will apply for as long as the pension is paid. Therefore, before applying, you must ensure that your income under the QPP, the Old Age Security program, and personal savings and pension funds, if any, will be sufficient to maintain your expected standard of living during retirement.

False. The amount each person can receive varies given that the method for calculating the amount of a retirement pension takes into consideration employment earnings recorded and contributions made under the QPP. In recent years, less than 5% of new beneficiaries have received the maximum pension. In 2019, the maximum annual retirement pension you could receive at age 65 under the QPP is $13 855, which is then indexed each year.

Therefore, for a person to be well prepared financially for retirement and obtain an estimate of the amount of their pension, we recommend he or she use our SimulR and SimulRetraite retirement simulator tools.

True. If you share custody of an eligible child during the month in which the $102  Supplement is paid in July 2019 for example, each parent will receive $51. We consider that a child is in shared custody when the child lives alternately with each parent between 40% and 60% of the time each month (for example: 3 days a week or 12 days a month).  If custody of a child is shared between one parent and another person, the parent's percentage of custody time must be a minimum of 40% but not more than 49% each month. However, if one parent has sole custody of his or her child temporarily in July 2019, that parent will receive the full amount of $102.

True. The notice will give you the amounts that you will receive from July 2019 through June 2020. Be sure to verify that the information on your family situation is correct because amounts vary depending on the number of dependent children and whether the children are in shared custody.
In order for Retraite Québec to determine your Family Allowance amount, you and your spouse must file Québec income tax returns each year, even if one or both of you have no income to report, because the amount is calculated based on your family income for the preceding year.

Summary