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Quebec Pension Plan (QPP)

The Quebec Pension Plan (QPP) comprises three kinds of benefits. The following table outlines the main features of each.

Quebec Pension Plan  (QPP)
  Pension Survivor benefits Disability benefits

Eligibility requirements

Age 60:

  • You must have contributed to the QPP for at least one year
  • You must have stopped working or your salary must have been reduced by at least 20% in preparation for retirement

Age 65:

  • You must have contributed to the QPP for at least one year

Survivor benefits offer financial protection to the deceased person’s loved ones if the deceased has contributed sufficiently to the QPP. Other conditions apply depending on the benefit.
Information:
www.rrq.gouv.qc.ca/en

Disability benefits offer financial protection to a disabled person who has contributed sufficiently to the QPP. Other conditions apply depending on the benefit.
Information:
www.rrq.gouv.qc.ca/en

Calculation of the pension amount

Based on your employment income registered under the QPP and your retirement age

Taxation

Benefits are taxable

Benefits are taxable

Duration

Benefits paid for life

Indexation

Adjusted to the cost of living in January each year

Unlike the Old Age Security (OAS) pension, the QPP is not available to everyone. You must have worked to be eligible for it, and the amount of the benefits varies according to the age at which you retire and how much you earned over the course of your lifetime.

You can receive a pension from the QPP before age 65 but take heed; the amount of your pension will be reduced. It’s the other way around if you apply for your pension after your 65th birthday, at which time it will be higher than at age 65. In fact, it will be 6% higher each year until you turn 70. The decrease or increase of your pension will be valid for your entire retirement.

QPP Adjustments According to Retirement Age
Retirement Age QPP Adjustment Example

65

No adjustment

 

Under 65

Adjusted downward 0.5% for each month preceding your 65th birthday, which represents a 6% reduction per year. Downward adjustment applicable up to age 60. Before this age, the pension is not offered.

If you start receiving your pension on your 63rd birthday, it will be reduced by 12%, i.e., 24 months x 0.5%. This reduction will be applied for the rest of your life.

Over 65

Adjusted upward 0.5% for each month following your 65th birthday, which represents a 6% increase per year, until age 70.

If you start receiving your pension right on your 67th birthday, it will be increased by 12%, i.e., 24 months x 0.5%. This increase will be applied for the rest of your life.

 

QPP Benefits for a Single Individual in 20081
Average Annual Employment Earnings2 Retirement at Age 60 Retirement at Age 65
$15,000 $2,625 $3,750
$20,000 $3,500 $5,000
$25,000 $4,375 $6,250
$30,000 $5,250 $7,500
$35,000 $6,125 $8,750
$40,000 $7,000 $10,000
$45,000 $7,430 $10,615
$50,000 $7,430 $10,615

 

How to Determine Your Pension from the Provincial Plan

To have an idea of how much you'll be entitled to when you retire, refer to your QPP Statement of Participation. Starting the year you turn 24, this statement is mailed to you every four years.

It shows the amount of pension you’ve accrued to date, that is, the monthly pension you would receive if you stopped contributing to the Plan on the date on which the statement was issued. It also shows your projected amount, that is, the monthly pension that you will receive at age 60 or 65 if you continue to contribute to the Plan at the same rate.

Can't find your last statement? Want to apply for a pension? Have questions? Use the online NetRégie service or call the Régie.

Régie des rentes du Québec
514-873-2433 (Montréal)
418-643-5185 (Quebec City)
1-800-463-5185 (toll free)

If need be, your Laurentian Bank advisor can help you make heads and tails of it all. We're there for you!

Other Pension Plans

 

1. Source: Guide to Financial Planning for Retirement published by Question Retraite.
2. Average annual employment earnings increased each year at the same rhythm as the QPP maximum pensionable earnings ($43,700 in 2007).