Basic pension (PPMP)
Here are answers to frequently asked questions by people who are planning their retirement.
Calculation of your basic pension under the PPMP
How will you calculate my retirement pension?
To determine the amount of your annual basic pension, we use the following formula:
During a given year, if you are employed in more than one position under a public-sector pension plan such as the RREGOP or the PPMP for the same employer or for different employers, it may have an influence of your average pensionable salary and therefore, on the amount of your retirement pension.
Will the same formula be applied if I work part‑time?
Yes. In that case, however, we will consider the annual salary you would have received had you worked full‑time.
Some time ago, I received a retroactive amount. Will that amount be used in the calculation of my retirement pension?
When you retire, we will use all or part of the retroactive payment to calculate your pension, provided the following 2 requirements are met:
- The retroactive payment is made based on your basic salary (the basic salary is the salary set out in your work contract).
- The retroactive payment concerns one of your 5 best-paid years of service.
Note: If you received a retroactive payment after 2006 and ceased to be a plan member after 2009, it is spread over each year concerned.
Unreduced immediate pension
When will I be entitled to an unreduced immediate pension?
You will be entitled to an unreduced immediate pension when you cease to be a member of your public-sector pension plan, provided your qualification period for the PPMP is over and you meet one of the following 3 eligibility requirements depending on your situation:
| Situations | Eligibility requirements |
|---|
You became qualified for the PPMP before 1 January 2013 or Your qualification period started before 1 January 2013 or
Your qualification period started after 31 December 2012, and your additional period of membership was completed. | You are at least age 61 or You are at least age 56 and have accrued at least 35 years of service credited for eligibility purposes or
You are at least age 58 and have reached the 90 factor (age + years of service credited for eligibility purposes). |
Your qualification period started after 31 December 2012, and your additional period of membership was not completed. | You are at least age 61 or You have accrued at least 35 years of service credited for eligibility purposes or
You are at least age 60 and have reached the 90 factor (age + years of service credited for eligibility
|
As a rule and in compliance with tax rules, you will then be eligible for an unreduced immediate pension, which means that the pension will be equal to your annual basic pension.
Note that working for an organization that is not subject to a public‑sector pension plan that we administer (e.g., a private company) will have no effect on the public‑sector pension you will receive from Retraite Québec.
How do I determine when I will reach the 90 factor?
To determine when you will reach the 90 factor, add your age and the number of years of service credited for eligibility purposes. Subtract this number from 90, then divide the result by 2. Then add this number to both your age and your years of service.
Reduced immediate pension
Can I retire even if I do not meet any of the eligibility requirements?
Yes. You can retire provided you are at least age 55, even if you do not meet any of the eligibility requirements for an unreduced pension provided by the PPMP. In this case, however, you are eligible for a reduced immediate pension.
Since you will receive your immediate pension for a longer period than if you had waited to meet one of the 3 eligibility requirements to apply for it, your annual basic pension will be reduced permanently due to early retirement. This reduction is 0.5% per month of early retirement (6% a year).
How do I calculate the amount of reduced immediate pension to which I am entitled?
First, you must determine the percentage of reduction applicable to your annual basic pension by multiplying by 0.5% (6% a year) the number of months between the date of your retirement and the date on which you would have been eligible for an unreduced immediate pension, depending on your situation:
| Situations | Eligibility requirements |
|---|
You became qualified for the PPMP before 1 January 2013 or Your qualification period started before 1 January 2013 or Your qualification period started after 31 December 2012 and your additional period of membership was completed. | You are at least age 61 or You are at least age 56 and have accrued 35 years of service credited for eligibility purposes or You are at least age 58 and have reached the 90 factor (age + years of service credited for eligibility purposes). |
Your qualification period started after 31 December 2012 and your additional period of membership was not completed | You are at least age 61 or You have accrued 35 years of service credited for eligibility purposes or You are at least age 60 and have reached the 90 factor (age + years of service credited for eligibility purposes). |
You then multiply the amount of your annual basic pension by the percentage of reduction obtained in order to determine the reduction applicable to your pension.
Finally, you subtract the amount from your annual basic pension in order to determine the amount of reduced immediate pension to which you are entitled.
Is it possible to have the reduction reduced or cancelled?
Yes. This is what we call the compensation of the reduction due to early payment of a pension. It consists in transferring to the PPMP the amount necessary for you to be paid under your plan an amount equal to the reduction you wish to have reduced or cancelled. Note that you can compensate all or part of the reduction applicable to your pension.
If you pay yourself the compensation for your reduction, a transfer must be made from your Registered Retirement Savings Plan (RRSP), Locked-In Retirement Account (LIRA), Registered Pension Plan (RPP), or the portion of your retirement allowance transferable to one of those vehicles, in compliance with tax rules and within 60 days of the end of your membership. Your employer can also pay the amount necessary to reduce or cancel the reduction of your pension, but no later than the date on which you cease to be a member of your public‑sector pension plan.
Retiring before the end of your qualification period for the PPMP
Will I be entitled to a public‑sector retirement pension if I resign before the end of my qualification period for the PPMP?
Yes. But if you resign before your qualification period for the PPMP is over, you will not be entitled to a pension under the PPMP. However, if you meet one of the RREGOP eligibility requirements at the time of your resignation, you will be entitled to a pension under the RREGOP.
Retiring before the end of your additional period of membership, but after your period of qualification
Will I be entitled to a public‑sector retirement pension if I resign after my qualification period but before having completed my additional period of membership
Yes. You will be entitled to a pension from the PPMP provided you meet one of the following 3 eligibility requirements:
- You are at least age 61
- You have at least 35 years of service credited for eligibility purposes
- You are at least age 60 and have reached the 90 factor (age + years of service credited for eligibility purposes).
Note that your average pensionable salary used to calculate your pension will be established based on your 5 best-paid years of service.
Indexation of your public-sector retirement pension
When I am retired, will my PPMP pension be indexed?
Yes. Once you begin receiving your PPMP pension, it will be indexed on 1 January of each year using the rate of increase of the Pension Index (PI) determined in accordance with the Act respecting the Québec Pension Plan as follows and applied to take into account the increase in the cost of living:
- The portion of your pension that corresponds to years of service accrued before 1 July 1982 will be fully indexed to the PI.
- The portion of your pension that corresponds to years of service accrued from 1 July 1982 until 31 December 1999 will be indexed to the PI, minus 3%. If the PI is 3% or less, that portion of the pension will not be indexed.
- The portion of your pension that corresponds to years of service accrued since 1 January 2000 will be indexed using the more advantageous of the following 2 formulas:
- 50% of the rate of increase of the PI or
- the rate of increase of the PI, minus 3%
Note that indexation of certain pensions will be suspended for a 6‑year period.
Indexation of your pension will be suspended from 2018 through 2023 if:
- you are entitled to an immediate pension and you stopped working before 1 January 2017.
- you are entitled to a deferred pension that took effect before 1 January 2017
Indexation of your pension will be suspended from 2021 through 2026 if:
- you are entitled to an immediate pension and you stopped working after 31 December 2016 but before 1 July 2019;
- you are entitled to a deferred pension that took effect after 31 December 2016 but before 1 July 2019.
The suspension also applies to surviving spouse's pensions and to reduced immediate pensions not yet in payment. It also applies to retirees under the PPMP who return to work or who are taking advantage of gradual retirement.
For all retirement pensions subject to the 6-year suspension, indexation for each period of service resumes after the suspension as follows:
| Period of service | Indexation rate |
|---|
Years of service accrued before 1 July 1982 | 50% of the rate of increase of the PI |
Years of service accrued from 1 July 1982 to 31 December 1999 | Rate of increase of the PI, minus 3% |
Years of service accrued since 1 January 2000 | Rate of increase of the PI, minus 3%, or 50% of the rate of increase of the PI, whichever is greater |
If I retire on a date other than 1 January, will my pension be indexed in the same manner?
Yes. However, the first time your pension is indexed, that is, on 1 January following the date of your retirement, the indexation will be calculated on the basis of the number of days for which your pension is payable during the first year of your retirement, relative to 365 days (or 366 days, if it's a leap year).
Integration of your public-sector pension plan with the Québec Pension Plan (QPP)
How does integration with the QPP affect my pension under a public-sector retirement plan?
When you turn 65, your public-sector pension plan will take into account the fact that you also receive a pension under the QPP. This will reduce of the pension you receive under your public-sector pension plan. This process is called integration with the QPP.
Your retirement pension will be reduced as of the month following your 65th birthday.
Note that the portion of the pension that corresponds to years accrued after 35 years of service is not integrated with the QPP. The introduction of the additional plan under the QPP as of 1 January 2019 does not change the existing provisions of public-sector pension plans. Therefore, only the pension paid under the Québec Pension Plan's base plan is taken into account to calculate the amount of the reduction resulting from integration.
Like many of the pension plans offered by other employers, your public-sector pension plan is integrated with the QPP. As a result of integration, the total of the pensions payable to a person under the QPP and his or her public-sector pension plan is equal to about 80% of the person's average pensionable salary prior to retirement, provided the person had accrued 40 years of service as at 31 December 2018.
Integration with the QPP has no effect on the amount of the QPP retirement pension. However, as of age 65, a reduction not linked to integration may apply to your disability or surviving spouse's pensions payable under the QPP.
Is integration mandatory?
Yes. Integration with the QPP is provided for under the law that governs your public-sector pension plan.
If I apply for my QPP pension at age 60, will my public-sector retirement pension be reduced at age 60 as well?
No. Your public-sector retirement pension will be reduced only as of the month following your 65th birthday, even if you begin receiving your QPP pension before you turn 65.
If I die before I turn 65, does integration with the QPP apply?
Yes. Your pension will be integrated as of the month following your death, even if you die before age 65.
How partition of benefits accrued under a public-sector pension plan affects your retirement pension
Following a divorce, the value of benefits accrued under my pension plan has been partitioned between me and my former spouse. Will that affect the value of the benefits accrued under my pension plan?
Yes. In order to take into account the amounts that were transferred, we will calculate what is called a reduction due to partition. When you exercise your rights under your public-sector pension plan, your benefits will be reduced accordingly on a permanent basis.
Integration with the Québec Pension Plan at age 65 does not take into account the reduction due to partition. The full amount of your pension is integrated, and not the reduced pension amount due to partition.
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