Regulatory amendments to certain public-sector pension plans

Changes to your public-sector pension plan

The Act respecting the implementation of recommendations of the pension committee of certain public sector pension plans and amending various legislative provisions was assented to on 21 March 2018.

The legislative amendments mainly concern:

• the definition of absence without pay
• the retroactive recognition of service following a change in employment status or employer
• the buy-back of service accrued and recognized following a change in employment status or employer
• payment methods for buy‑backs
• the partition of benefits accrued under a pension plan when de facto spouses stop living together
• the simplification of plan membership for a member of the Lieutenant-Governor's, a Minister's or a member of the National Assembly's staff
• the sharing of costs under the Pension Plan of Peace Officers in Correctional Services (PPPOCS).

Definition of absence without pay

Pension plans affected: RREGOP, PPMP, TPP, CSSP, PPCT

Effective date: 14 June 2002

An absence can be considered an absence without pay provided all the following conditions are met:

• It must be provided for in the member's conditions of employment.
• It must be authorized by the employer.
• The member must not have received any remuneration during the period in question.
• The member would or could have worked had it not been for the absence.

According to this definition, a temporary layoff does not constitute an absence without pay. However, a temporary layoff for which an application for buy-back was filed with Retraite Québec before 15 February 2018 is considered an absence without pay if no final decision was rendered before that date. Such a layoff shall be permanently recognized as an absence without pay whether or not the buy-back proposal further to the application is accepted.

Retroactive recognition of service following a change in employment status or employer

Pension plans affected: RREGOP, PPMP

Effective date: 21 March 2018

Participation in the RREGOP or the PPMP can be recognized retroactively under certain conditions and upon request:

• following a change in employment status from self-employed worker to employeeOR

• once it is established that the actual employer is in fact subject to a public sector pension plan.

Retraite Québec must receive the application for retroactive recognition of service no later than 36 months following the first day covered by the application. Service will then be recognized, and contributions without interest will be paid. The employee's contributions will be collected by the employer and paid into the pension plan's fund.

Applications filed with Retraite Québec after the 36-month time limit has expired will be rejected.

If the application for retroactive recognition of service is further to a decision by a competent authority, that is:

•  the Tribunal administratif du travail (TAT)
•  the Canada Revenue Agency (CRA)
•  Revenu Québec, or
•  a higher instance whose decision is related to that of the TAT or either of the revenue agenciesOR
•  an out-of-court settlement reached following a petition to the TAT

no participation prior to the date on which the petition was filed with the TAT, or the date of the decision in other cases, will be recognized by Retraite Québec, even if the period of service falls within the preceding 36 months. This means that the application will be rejected, and the employer will not be able to collect contributions for that period.

However, an application for the buy-back of service accrued and recognized following a change in employment status or employer can be filed for any period of service that is not retroactively recognized.

Buy-back of service accrued and recognized following a change in employment status or employer

Pension plans affected: RREGOP, PPMP

Effective date: 21 March 2018

A person can buy back a period of service if a decision by a competent authority ^[1] or an out of court settlement reached following a petition to the TAT shows that, during the period in question:

• he or she was covered by the plan because of his or her employment status; in other words, the decision shows that his or her employment status is recognized as employee rather than self-employed worker.OR
• his or her actual employer was subject to the RREGOP or the PPMP; in other words, the decision identifies the person's actual employer for the period to be bought back as an employer subject to either pension plan.

The period to be bought back could be limited to 15 or 18 years of service, depending on the situation.

It excludes periods during which the person contributed to a pension plan, including supplemental pension plans (SPPs).

Periods during which the person received salary insurance benefits or during which the person was on maternity leave can be bought back.

Buy-backs allow employees to be credited the salary they would have received or to which they would have been entitled under the working conditions that should have applied as employees of an employer subject to the RREGOP or the PPMP.

Payment methods for buy backs

Pension plans affected: PPMP, PPPOCS

Effective date: 21 March 2018

Certain periods can be bought back using the employee's bank of sick days, if the working conditions so provide. This information can be obtained from the employer.

Partition of benefits accrued under a pension plan when de facto spouses stop living together

Plans affected: RREGOP, PPMP, RPSO, PPPOCS, TPP, CSSP, PPCT, PPEMO, SPMSQ, RPCHCN, PPFEQ

Effective date: To be determined by order in council at a later date

In cases where de facto spouses who qualify as such stop living together, partition of the benefits accrued under a public-sector pension plan subject to this legislative amendment will become possible starting on the effective date set by the government.

The former de facto spouses must agree to partition within 12 months of the date on which the union broke down. The agreement is subject to certain legal conditions. No more than 50% of the value of the benefits accrued under the plan can be awarded to either spouse.

If the de facto spouses stopped living together after 31 August 1990 but before the amendement took effect, they may agree to partition within 12 months of the effective date of the amendement.

They will be able to obtain a statement of benefits accrued as at the date on which they stopped living together. The conditions for obtaining this statement of benefits will be provided for by law.

Simplification of plan membership for a member of the Lieutenant-Governor's, a Minister's or a member of the National Assembly's staff

Pension plans affected: RREGOP, PPMP, TPP, CSSP

Effective date: 21 March 2018

The application for membership in the plan must be filed by the member directly with Retraite Québec. It is no longer necessary that the government adopt an order-in-council to that effect.

Participation in the plan begins on the date indicated in the application. The starting date can be up to 12 months prior to the date on which the application is received by Retraite Québec, but cannot be before the date on which the person became a member of the Lieutenant Governor's, a Minister's or a member of the National Assembly's staff.

The sharing of costs under the Pension Plan of Peace Officers in Correctional Services (PPPOCS)

Pension plan affected: PPPOCS

Effective date: 1 January 2025

As of 2025, the cost of the plan will be shared equally between members and employers. For years of service between 2013 and 2024, 46% of the cost is payable by members, and 54% by employers.

1. Note 1That is, the Tribunal administratif du travail (TAT), the Canada Revenue Agency (CRA), Revenu Québec, a higher instance whose decision is related to that of the TAT or the agency concerned, or the RREGOP/PPMP arbitration tribunal. Back to reference