Legislative Amendments on Certain Public Sector Pension Plans
Changes to your pension plan
Bill no 97 passed on June 8, 2016.
The changes are presented below.
Increase in the maximum number of years of service for
calculation of the pension
Related pension plans: RREGOP, TPP, CSSP and PPCT
Effective date: January 1, 2017
Currently, the maximum number of years of service for calculation
of the pension is 38.
Beginning on January 1, 2017, the maximum number of years of
service will increase gradually year after year, to reach 40 on
December 31, 2018. Therefore, you could receive a pension
corresponding to a maximum of 80% of your average pensionable salary
on January 1, 2019.
Elements to consider
- Coordination with the Québec Pension Plan does not apply to
the part of your pension corresponding to years of service after
35 years.
- There is not retroactive application. Therefore, service
prior to January 1, 2017 exceeding 38 years on December 31, 2016 is not recognized for calculation of your pension. However, the
pensionable salary corresponding to that service can be used for
calculation of your average pensionable salary.
- If you reach 38 years of service on December 31, 2016, you
will necessarily begin contributing from January 1, 2017,
including pre-retirement (usage of vacation days and sick leaves).
- No buy-back of service can total more than 38 years of
service for calculation of the pension on December 31, 2016.
- The formula to calculate your contributions is not changed.
Changes to eligibility criteria for an immediate pension without reduction
Related pension plans: RREGOP, PPMP
Effective date: July 1, 2019
The following eligibility criteria for an immediate pension
without reduction will come into effect on July 1, 2019:
- Age criteria to increase from 60 years old to 61 years old.
- Addition of a new criteria, that is, criteria 60 years old
with a 90 eligibility factor (age + service for eligibility to a pension).
For the PPMP, those criteria will only apply if you have to
complete the additional participation period, but cease membership
to the plan before the end of that participation period.
Note that the criteria 35 years of service for eligibility to an
immediate pension without reduction is maintained.
Increase in the rate of reduction due to anticipation of the
immediate pension
Related pension plans: RREGOP, PPMP
Effective date: July 1, 2020
The reduction rate due to the anticipation of the immediate
pension will increase from 4% to 6% per year of anticipation
beginning on July 1, 2020.
For the PPMP, that rate will only apply if you have to complete
the additional participation period, but cease membership to the
plan before the end of that participation period.
Introduction of a bridge provision for phased departure agreements
Related pension plans: RREGOP, PPMP
Effective date: July 1, 2019
If you had already began a phased departure agreement on the
filing date of the bill at the National Assembly, that is, May 11,
2016, the provisions of the act will apply at the end of the
agreement, under the RREGOP or the Act respecting the PPMP, as they
will read on June 30, 2019.
For the PPMP, these provisions will only apply if you have to
complete the additional participation period, but cease membership
to the plan before the end of that participation period.
Therefore, it is the eligibility criteria to an immediate pension without reduction 60 years old or 35 years of service which will apply. In case of anticipation of the pension, it is the annual reduction rate of 4% which will apply.
Those criteria will also be maintained if your agreement began
during the period from May 11, 2016 to September 7, 2016, inclusively. In that case, your work schedule must be reduced by at
least 20% of the normal schedule for full-time equivalent
employment, and this, for each year of your phased departure agreement.
If you have questions on this subject, consult the Questions & Answers to find out more.