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 $3500. 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 under the Québec Pension Plan, you must contribute to the Plan once your employment earnings exceed the basic exemption of $3500. The contributions you make will give you entitlement to a pension increase known as the
retirement pension supplement.
To find out the amount of employment earnings recorded under your name for the Plan, consult your Statement of Participation. It is an excellent planning tool, and it is simple and free.
Contributions: payment and deductions
In January 2019, the enhancement to the Québec Pension Plan came into effect, which resulted in the introduction of an additional plan and the payment of additional contributions. Therefore, the total contribution rate for
12.8%, which includes contributions to the basic plan and the additional plan. The rates apply to the portion of employment earnings between the basic exemption and the maximum pensionable earnings, which is $66 600 for
- If you are a salaried worker, you pay half of that rate, (6.40%), and your employer pays the other half.
- If you are self-employed, you have a contribution rate of
12.8% of the part of your employment earnings subject to contribution.
- If you start receiving your retirement pension at age 65, it will replace between
25% to 33.33% the earnings on which you contributed, based on the number of years during which you will contributed to the additional plan, introduced in 2019 following the enhancement to the Québec Pension plan.
- 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 replacementindemnity from the Commission des normes, de l'équité, de la santé et de la sécurité du travail (CNESST)
- starting in 1966, the months for which you received
Québec family benefits or a
Canada child benefit in your own name for a child under age 7. The period can be extended up to 18 years for the parent of a child requiring exceptional care receiving a benefit under the Supplement for Handicapped Children Requiring Exceptional CareSee Note 1 program.
- months during which the person's earnings were the lowest (up to 15% of the period).
The Québec Pension Plan will always be there for you
The Plan is sustainable and profitable for all generations of Quebeckers.
The Plan has a reserve to deal with situations and unexpected events specific to our society, such as the aging population and economic fluctuations.
Retraite Québec 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.
public consultation is held
every 6 years to allow citizens to propose amendments to the Plan.
Note 1This measure applies to applications for benefits received as of 1 January 2020 and covers the months during which the parent benefited from the Supplement for Handicapped Children Requiring Exceptional Care since its creation on 1 April 2016.Back to reference