Pension plans and partition
Finding out the amount of employment earnings entered under the Québec Pension Plan and the value of benefits accrued under the pension plans allows you to make an informed decision in the event of separation. A personalized assessment can be provided upon request. It is not necessary to wait for retirement to start the process. This information step is not binding. Even persons thinking about renouncing partition should be informed to better understand the effects of their decision.
Two elements determine the rules for partition:
the type of pension plan and the type of union.
Making an inventory of pension plans
The inventory of pension plans under which each person was a member during the union must be shared so that an overall picture can be drawn. This simple exercise allows each person to familiarize themselves with the name of the plans and to prepare the steps to take.
The person who worked in Québec contributed to the Québec Pension Plan (QPP).
The Québec Pension Plan is a compulsory public insurance plan for workers age 18 and over whose annual employment income is greater than $3500. The Plan is funded by contributions made by workers, deducted from their salary, and by the employer. Contributions are collected by Revenu Québec and are administered by the Caisse de dépôt et placement du Québec.
The earnings recorded under the
QPP by each spouse can be partitioned following a separation.
The person who worked in the Québec public service, education or health and social services sector probably contributed to one of the following pension plans:
The benefits accrued during the union by the person who contributed to the plan can be partitioned following a separation.
The person who worked in the private, municipal or university sector may have participated in the
supplemental pension plan, referred to as workplace pension plan. To confirm his or her participation, he or she could
contact the plan administrator.
The benefits accrued during the union by the person who participated in the plan can be partitioned following a breakdown of a union.
The following are the different types of supplemental pension plans:
- The
defined-contribution plan is a plan where the amount of the contributions is determined in advance and where the amount of the retirement income is not determined in advance. It depends on the amounts credited to the account of employees. Please note that the simplified pension plan (SPP) is a defined-contribution plan with other characteristics.
- The
defined-benefit plan is a plan where the amount of the retirement pension is determined in advance and is established according to a specific formula (for example: a percentage of salary multiplied by the years of service recognized by the plan).
- the
target-benefit pension plan is a plan where the employer's contribution and the target benefit are set in advance. The amount of the employee's benefits depends on the plan's financial situation.
The steps for partition
In the event of a breakdown of a union, the
persons recognized as spouses can partition the benefits accrued under their pension plan. Find the rules for partition applicable to the persons recognized as spouses whether they are married, in a civil union or in a de facto union.
Québec Pension Plan
The Québec Pension Plan is a compulsory public insurance plan for workers age 18 and over whose annual employment income is greater than $3500. The plan is funded by contributions made by workers, deducted from their salary, and by the employer. Contributions are collected by Revenu Québec and are administered by the Caisse de dépôt et placement du Québec.
Public-sector pension plans
Public-sector pension plans affect workers in the education, and health and social services sectors, and employees in the Québec public service. The 2 main plans are
RREGOP (Government and Public Employees Retirement Plan) and the
PPMP (Pension Plan of Management Personnel).
Pension plans of the private, municipal and university sectors
Supplemental pension plans in the private, municipal and university sectors are workplace pension plans. There are different types of pension plans: the defined-contribution plan the defined-benefit plan and the target-benefit pension plan.
Voluntary retirement savings plans
The voluntary retirement savings plan (VRSP) affects workers who do not benefit from a pension plan offered by the employer, self-employed workers and business owners. Membership in that type of plan is voluntary.
Québec Pension Plan
The Québec Pension Plan is a compulsory public insurance plan for workers age 18 and over whose annual employment income is greater than $3500. The plan is funded by contributions made by workers, deducted from their salary, and by the employer. Contributions are collected by Revenu Québec and are administered by the Caisse de dépôt et placement du Québec.
Public-sector pension plans
Public-sector pension plans affect workers in the education, and health and social services sectors, and employees in the Québec public service. The 2 main plans are
RREGOP (Government and Public Employees Retirement Plan) and the
PPMP (Pension Plan of Management Personnel).
Pension plans of the private, municipal and university sectors
Supplemental pension plans in the private, municipal and university sectors are workplace pension plans. There are different types of pension plans: the defined-contribution plan, the defined-benefit plan and the target-benefit pension plan.
Voluntary retirement savings plans
The voluntary retirement savings plan (VRSP) affects workers who do not benefit from a pension plan offered by the employer, self-employed workers and business owners. Membership in that type of plan is voluntary.