Quebec 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 3 500 $. 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. The Plan's future is guaranteed.

 

The Québec Pension Plan is funded by contributions made by Québec workers and employers. Contributions are collected by Revenue Québec and are administered by the Caisse de dépôt et placement du Québec.

 

In 2015, the contribution rate for the Québec Pension Plan is 10,50%. The rate applies to the portion of employment earnings between the basic exemption of $3,500 and the maximum earnings on which contributions can be made in 2015, which is $53,600. 

 

The plan offers benefits for retirement, disability and death but we will only cover retirement and death here.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retirement Benefit:

 

To receive a retirement pension, you must have contributed sufficiently to the Québec Pension Plan. 

 

The amount of your retirement pension is calculated on the basis of the employment earnings recorded under your name since 1966, the date on which the Plan started. The amount also varies according to your age when you begin receiving your pension. 

 

You can start receiving a retirement pension as early as age 60, but the amount will be lower than if you wait until you reach normal retirement age, that is, age 65. If you stop working earlier, you will have to wait until you turn 60 to start receiving it.

 

To receive a retirement pension, you must have contributed sufficiently to the Québec Pension Plan. 

 

The amount of your retirement pension is calculated on the basis of the employment earnings recorded under your name since 1966, the date on which the Plan started. The amount also varies according to your age when you begin receiving your pension.

 

You can start receiving a retirement pension as early as age 60, but the amount will be lower than if you wait until you reach normal retirement age, that is, age 65. If you stop working earlier, you will have to wait until you turn 60 to start receiving it. As shown below, the maximum monthly amount at 65 is $1065 based on 2015 amount. Electing to receive the pension at 60 will reduce the amount to $707.16 and increase to $1512.30 if taken at 70.

 

Use the tool provided in the Savings Section to calculate and evaluate the best age to make the claim for you.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QPP Pension Supplement

 

The QPP supplement is an supplement amount that is calculated every year that you continue to work and contribute to the pension. The additional amount is cumulative i.e. the supplement amount is added to the previous year's supplement amount. Once you stop working, the last cumulative amount remains in effect until you die.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See example for clarification.

 

 

 

 

 

 

 

 

 

 

 

 

 

Death Benefit

 

The death benefit is a lump-sum payment of a maximal amount of 2 500 $. It is paid if the deceased contributed sufficiently to the Québec Pension Plan.

 

The death benefit is paid to the person or charitable organization that paid the funeral expenses or to the heirs.