A Glimpse of the PPEMO 2019

New provisions

The partition of benefits accrued under a public-sector pension plan in the event of the breakdown of a union between de facto spouses

Since 1 January 2019, benefits accrued under certain public-sector pension plans, including the PPEMO, can be partitioned in the event of the breakdown of a union between de facto spouses.

The Act respecting the implementation of recommendations of the pension committee of certain public sector pension plans and amending various legislative provisions (S.Q. 2018, Chapter 4) introduced provisions that provide for partition between de facto spouses. Regulatory amendments providing for the terms and conditions regarding the partition of benefits accrued under a public-sector pension plan following the breakdown of a union completed the implementation of the new provisions. The main regulatory amendments concern applications for statements of benefits, statements of benefits accrued and applications for payment of the value of accrued benefits.

To partition benefits accrued under a public-sector pension plan, you must first file an application with Retraite Québec in order to learn the value of the benefits accrued under your plan. The application must be signed by the pension plan member or the beneficiary, and his or her spouse. An application for payment of the value of accrued benefits must also be filed with Retraite Québec. It must be accompanied by a written agreement that has been signed by the spouses before a notary or an attorney, or by a joint sworn statement, within the 12 months following the date of the breakdown of the union. If the breakdown of the union took place before 1 January 2019, the written agreement must be jointly signed before 2 January 2020.

Who are considered de facto spouses?

The PPEMO defines de facto spouses as two people who, on the date on which they stopped living together, were not married or in a civil union, provided they presented themselves publicly as de facto spouses and lived together in a conjugal relationship for at least:

• the three years preceding the date on which they stopped living together
  or
• the year preceding the date on which they stopped living together, if a child was born or will be born of their union.

For more information

The Retraite Québec website contains all the information and forms needed with regard to partition between spouses, regardless of the type of union (married, civil union or de facto union). For more information, see:

• The web section that deals with this subject 
• The booklet entitled In the Event of the Breakdown of Your Union 

A 4.2% return for the PPEMO pension fund in 2018

The PPEMO members' fund generated a 4.2% rate of return in 2018. Contributions are invested with the Caisse de dépôt et placement du Québec (CDPQ) in various asset categories such as bonds, stock markets, real estate and infrastructure. The weighting of each of these asset categories is outlined in the PPEMO investment policy, which is established jointly by the PPEMO pension committee and the CDPQ.

Over the past ten years, the PPEMO fund at the CDPQ has increased by over $142M, from $128M as at 31 December 2008 to $270M as at 31 December 2018. During this ten-year period, the average annual return of the PPEMO fund was 9.3%, whereas it was 8.4% over the past five years.

Returns from 2009 to 2018 (percentage)

 

The PPEMO pension committee:
Overseeing the sound management of your plan

When the Pension Plan of Elected Municipal Officers was created, the government appointed a pension committee. An order in council was formulated by Cabinet and seven people were selected to form the committee. The position of president is held by an independent party, while three members are chosen from joint recommendations by the Union des municipalités du Québec (UMQ) and the Fédération québécoise des municipalités (FQM). One of these members must also be a beneficiary of the plan. The three remaining members represent the government.

Mandate

The responsibilities of the PPEMO pension committee are set out in the Act respecting the Pension Plan of Elected Municipal Officers. They include:

• Establishing an investment policy for plan contributions jointly with the CDPQ.
•  Approving the financial statements of the plan.
• Receiving for examination the reports on the actuarial valuation of the plan.
• Reviewing, on request, the decisions made by Retraite Québec concerning plan
  members and beneficiaries.
• Receiving for examination Retraite Québec's annual plan of action for the plan.
• Submitting recommendations to the government concerning the application of
  plan provisions.

The pension committee can also ask Retraite Québec to conduct studies on the administration of the plan, as well as submit recommendations as to how the PPEMO is being administered.

In order to help carry out its mandate, the pension committee has entrusted certain responsibilities to subcommittees, particularly with regard to investments.

The pension committee receives assistance from the Secrétariat des comités de retraite et du réexamen, as well as an investment policy expert. It is also assisted by various Retraite Québec departments, including the Direction des régimes de retraite du secteur public, the Direction des placements and the Direction des communications.

The pension committee and the executive management team at Retraite Québec maintain an ongoing dialog in order to continue improving the quality of the services provided to plan members and beneficiaries.

The PPEMO pension committee

Mr. Paul Préseault	President of the pension committee
Mr. Frédéric Allard	Ministère des Affaires municipales et de l'Habitation
Mr. Marc-Alexandre Brousseau	Mayor of Thetford Mines
Ms. Isabelle Garneau	Secrétariat du Conseil du trésor
Mr. Jean Perron	Mayor of Fossambault-sur-le-Lac
Ms. Sylvie Panneton	Ministère des Affaires municipales et de l'Habitation
Ms. Jacinthe B. Simard	Plan beneficiary
Mr. Yves Létourneau	Observer, Union des municipalités du Québec