Summary

Purpose of the report

The actuarial report is further to the amendments announced in the budget of 12 March 2024. Its purpose is to indicate to what extent the amendments affect the projections of the actuarial valuation as at 31 December 2021.

The measures introduced are mainly intended to eliminate the reduction of the retirement pension as of age 65 for disabled persons.

Results of the actuarial report

The results of the actuarial report, which take into account the amendments announced, confirm that the Québec Pension Plan (QPP) remains in good financial health.
Under the base plan and the additional plan, cash inflows are sufficient to fund cash outflows for each of the 50 years in the projection period.

The new legislative measures reduce the financial margin of the QPP and increase the probability that the steady-state contribution rate reaches or exceeds 10.80%. Nevertheless, the funding indicators remain lower than the statutory contribution rates provided for under the Act.

• Base plan: the steady-state contribution rate is evaluated at 10.70%. The amendments contained in the bill result in an increase of 0.09% of this rate.
• Additional plan: the reference contribution rate is evaluated at 1.85%. The amendments contained in the bill result in an increase of 0.01% of this rate.