Retraite Québec may pay a retirement pension to anyone who has contributed to one of the pension plans it administers, including the:
Pension CreditAn annual sum acquired as a result of buy-back or transfer of years of service, or through participation in a pension plan, and which is payable upon retirement or at a later date. Basic Pension Main component of the retirement pension, calculated based on the average pensionable salary, the credited service and the pension accrual rate. Temporary Annuity for Pension Credit ServiceTemporary pension that is added to the basic pension for every year and part of a year giving entitlement to a pension credit or a sum payable by a third party, subject to certain limits. Life Annuity for Pension Credit ServiceLifetime pension that is added to the basic pension for every year and part of a year giving entitlement to a pension credit or a sum payable by a third party, subject to certain limits.
The retirement pension consists of a basic pension (see Definitions) plus, under certain conditions:
Payment of a Retirement PensionRetraite Québec pays a retirement pension to anyone who is entitled to receive one:
The pension is paid either by cheque or direct deposit. Immediate Pension Without Reduction A pension with no reduction is payable to an eligible employee from the day following the day when the employee ceased to participate in the plan. If the employee delays in filing an application, the pension is payable retroactively. Immediate Pension With Reduction An immediate pension with reduction is payable to a person who retires before reaching one of the following dates:
A certain reduction percentage is applied permanently to the amount of the pension. The pension is payable from one of the following dates:
This rule does not apply to participants in the Pension Plan of Certain Teachers (PPCT). In this case, the pension becomes payable the day following the day on which the employee ceased to participate in the plan. Income Tax DeductionsRetraite Québec deducts both federal and provincial income tax from pension payments. In determining the amount of the deductions, it assumes that your retirement pension is your sole income. Indexation of a Retirement PensionOn January 1 of each year, the basic pension is indexed to the rate of increase of the Pension Index, which is set in accordance with the Act Respecting the Québec Pension Plan. Revision of a Retirement Pension Retraite Québec may revise a pension to account for any error in calculation or any change to the data used to calculate the pension. Errors in calculation and corrections to data must be detected or received by the later of the following dates:
Downwards revision of the pension by Retraite Québec must be done within 12 months after that date. Thereafter, the amount of the pension can no longer be reduced. Other rules may apply depending on a person’s circumstances. NoteIf you continue to hold a job after December 30 of the year in which you turn 69, or 71 if you participate in the Retirement Plan for Senior Officials (RPSO) or the Pension Plan of Management Personnel (PPMP), the pension becomes payable only from the day following the day when you cease to hold the job, except in the case of a gradual retirement.
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