Do you work in the public service, education or health and social services sector? Well, you are automatically a member of a public-sector pension plan.
You did not know? Fear not! We will tell you what it is all about.
First of all, let's face it: being required to participate in something can sometimes seem like bad news. But, like all good rules, there are exceptions. For example, having to participate in a public-sector pension plan is a good thing.
There are 30 pension plans in the public sector. The best-known ones are the Government and Public Employees Retirement Plan (RREGOP) and the Pension Plan of Management Personnel (PPMP).
Throughout your career, you make contributions to your pension plan. Most employers also make contributions. Thanks to all these contributions, you will obtain retirement benefits. The contributions can also entitle you to a disability pension. When you die, your spouse may also receive a pension.
Under
RREGOP, for example, each year of contribution may help you accrue the equivalent of 2% of the amount of your pension. Therefore, after 35 years of service, you could be entitled to a pension that corresponds to 70% of your average salary for the 5 best-paid years.
Not only could you receive a pension for the rest of your life, but also, the pension could help protect you from various financial risks.
The pension is one of the sources of income on which you can count in retirement. It is up to you to plan its withdrawal in relation to your other retirement incomes. Do not hesitate to ask a specialist for advice.
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