How Will the Changes to the Quebec Pension Plan (QPP) Affect You?

In December 2011, the National Assembly of Quebec adopted new measures for the Quebec Pension Plan (QPP) in order to encourage experienced workers to remain in the labour force, among other things. Bill 39 will gradually amend the QPP and may affect, for instance, when you are eligible for your pension and rules regarding retroactivity.

As a result, many of the changes announced could affect your future. We have included a summary for you.

Retirement pension

As of 2014, contributors under age 65 can apply for their QPP pension before age 65 without having to show that they have stopped working.

Moreover, the maximum retroactive period will decrease to 12 months as of January 1, 2014. Persons aged 65, who do not apply for their retirement pension as soon as they become eligible, will only be entitled to retroactive payments for a maximum of 12 months, instead of 60 months. Only contributors aged 65 and over on January 1, 2014 will be entitled to the maximum retroactivity of 60 months if they apply for their pension between January 1 and December 31, 2014.

Disability pension

As of January 1, 2013, to be eligible for a disability pension as of age 60, individuals will have to have contributed to the plan for four of the last six years prior to their disability. Moreover, the term disability will be defined as the inability to do one’s regular work instead of the inability to do all types of work. For other age groups, individuals will have to have contributed either for at least:

• two of the last three years;
• five of the last 10 years;
• half of their contributory period (two years minimum).

In addition, contributors between the ages of 60 and 65, who have been receiving a QPP retirement pension for at least six months, will be entitled to receive an additional amount for disability ($445.47 for 2012).

Survivor’s benefits

The orphan’s pension increased from $69.38 per month in 2011 to $224.62 per month in 2012. Now, the child pension is accessible only if the child:

• is the deceased contributor’s minor biological or adopted child;
• lived with the contributor for at least one year and the contributor served as parent to the child.

Surviving spouses will receive 60% of the retirement pension supplement, which previously ended when the contributor died.

Lastly, as of 2013, the loved ones of individuals who contributed at least $500 to the QPP will be entitled a death benefit equivalent to the contributions paid, up to a maximum of $2,500.

Impact on your retirement plan

If some of these changes affect you, you should consider adapting your retirement plan accordingly. Your advisor can help you better understand the issues.