New provisions
The partition of benefits accrued under a public-sector pension plan in the event of the breakdown of a union between de facto spouses
Since
1 January 2019, benefits accrued under certain public-sector pension plans, including the
PPEMO, can be partitioned in the event of the breakdown of a union between de facto spouses.
The Act respecting the implementation of recommendations of the pension committee of certain public sector pension plans and amending various legislative provisions (S.Q. 2018, Chapter 4) introduced provisions that provide for partition between de facto spouses. Regulatory amendments providing for the terms and conditions regarding the partition of benefits accrued under a public-sector pension plan following the breakdown of a union completed the implementation of the new provisions. The main regulatory amendments concern applications for statements of benefits, statements of benefits accrued and applications for payment of the value of accrued benefits.
To partition benefits accrued under a public-sector pension plan, you must first file an application with Retraite Québec in order to learn the value of the benefits accrued under your plan. The application must be signed by the pension plan member or the beneficiary, and his or her spouse. An application for payment of the value of accrued benefits must also be filed with Retraite Québec. It must be accompanied by a written agreement that has been signed by the spouses before a notary or an attorney, or by a joint sworn statement, within the
12 months following the date of the breakdown of the union. If the breakdown of the union took place before 1 January 2019, the written agreement must be jointly signed before 2 January 2020.
Who are considered de facto spouses?
The
PPEMO defines de facto spouses as two people who, on the date on which they stopped living together, were not married or in a civil union, provided they presented themselves publicly as de facto spouses and lived together in a conjugal relationship for at least:
- the three years preceding the date on which they stopped living together
or - the year preceding the date on which they stopped living together, if a child was born or will be born of their union.
For more information
The Retraite Québec website contains all the information and forms needed with regard to partition between spouses, regardless of the type of union (married, civil union or de facto union). For more information, see:
In effect since 1 January 2019
Enhancement of the Québec Pension Plan
The enhancement of the Québec Pension Plan (QPP) consists of the introduction of an
additional plan . Since 1 January 2019, the
QPP is composed of two plans:
-
the basic plan, that is, the plan that has been in place since 1966 and to which employees and employers each contribute 5.4% of the portion of employment income between the general exemption of $3500 and the maximum pensionable earnings (MPE), which is $57 400 in 2019.
-
the additional plan, to which employees and employers make additional contributions based on a rate that will increase gradually from 2019 (0.15%) to 2023 (1.00%). In addition, as of 2024, new contributions will be made to the additional plan based on the portion of employment income between the
MPE and a new eligible pensionable salary, which will be 107% of the
MPE in 2024 and 114% of the
MPE in 2025.
Those who contribute to the additional plan will receive or be entitled to increased benefits at retirement, death or in the event of a disability in proportion to the number of years they contribute to the plan.
Visit the Retraite Québec website for more information on the enhancements made to the Québec Pension Plan and view the
animated presentation (available in French only), which will help you to better understand the changes that were made.
A 4.2% return for the
PPEMO pension fund in 2018
The
PPEMO members' fund generated a 4.2% rate of return in 2018. Contributions are invested with the Caisse de dépôt et placement du Québec (CDPQ) in various asset categories such as bonds, stock markets, real estate and infrastructure. The weighting of each of these asset categories is outlined in the
PPEMO investment policy, which is established jointly by the
PPEMO pension committee and the CDPQ.
Over the past ten years, the
PPEMO fund at the CDPQ has increased by over $142M, from $128M as at 31 December 2008 to $270M as at 31 December 2018. During this ten-year period, the average annual return of the
PPEMO fund was 9.3%, whereas it was 8.4% over the past five years.
Returns from 2009 to 2018 (percentage)
The
PPEMO pension committee:
Overseeing the sound management of your plan
When the Pension Plan of Elected Municipal Officers was created, the government appointed a pension committee. An order in council was formulated by Cabinet and seven people were selected to form the committee. The position of president is held by an independent party, while three members are chosen from joint recommendations by the Union des municipalités du Québec (UMQ) and the Fédération québécoise des municipalités (FQM). One of these members must also be a beneficiary of the plan. The three remaining members represent the government.
Mandate
The responsibilities of the
PPEMO pension committee are set out in the
Act respecting the Pension Plan of Elected Municipal Officers. They include:
- Establishing an investment policy for plan contributions jointly with the CDPQ.
- Approving the financial statements of the plan.
- Receiving for examination the reports on the actuarial valuation of the plan.
- Reviewing, on request, the decisions made by Retraite Québec concerning plan
members and beneficiaries. - Receiving for examination Retraite Québec's annual plan of action for the plan.
- Submitting recommendations to the government concerning the application of
plan provisions.
The pension committee can also ask Retraite Québec to conduct studies on the administration of the plan, as well as submit recommendations as to how the
PPEMO is being administered.
In order to help carry out its mandate, the pension committee has entrusted certain responsibilities to subcommittees, particularly with regard to investments.
The pension committee receives assistance from the Secrétariat des comités de retraite et du réexamen, as well as an investment policy expert. It is also assisted by various Retraite Québec departments, including the Direction des régimes de retraite du secteur public, the Direction des placements and the Direction des communications.
The pension committee and the executive management team at Retraite Québec maintain an ongoing dialog in order to continue improving the quality of the services provided to plan members and beneficiaries.
The
PPEMO pension committee
Mr. Paul Préseault | President of the pension committee |
Mr. Frédéric Allard | Ministère des Affaires municipales et de l'Habitation |
Mr. Marc-Alexandre Brousseau | Mayor of Thetford Mines |
Ms. Isabelle Garneau | Secrétariat du Conseil du trésor |
Mr. Jean Perron | Mayor of Fossambault-sur-le-Lac |
Ms. Sylvie Panneton | Ministère des Affaires municipales et de l'Habitation |
Ms. Jacinthe B. Simard | Plan beneficiary |
Mr. Yves Létourneau | Observer, Union des municipalités du Québec |
The
PPEMO pension committee: (from left to right)
Mr. Marc-Alexandre Brousseau,
Ms. Sylvie Panneton,
Mr. Paul Préseault,
Ms. Isabelle Garneau,
Mr. Jean Perron et
Mr. Frédéric Allard. Not present in the photo:
Ms. Jacinthe B. Simard
Contact us
www.retraitequebec.gouv.qc.ca
By telephone:
Québec region: 418 643-4881
Toll-free: 1 800 463-5533
By fax: 418 644-8659
By mail:
Retraite Québec
Régimes de retraite du secteur public
Case postale 5500, succursale Terminus
Québec (Québec) G1K 0G9