Quebec tackles pension challenge

Changes to new pension plan, QPP on the agenda
By Sarah Dobson
|Canadian HR Reporter|Last Updated: 04/25/2011

Pension plans in Quebec are feeling pressure from an aging population that is living longer. To deal with this challenge, the province announced in its 2011-2012 budget that adjustments will be made to the Quebec Pension Plan (QPP) and a new voluntary retirement savings plan will be implemented.

The changes to the QPP are important because by 2013 or 2014, the number of people leaving the workforce will outnumber those entering it, said Florent Francoeur, president and CEO of the Ordre des conseillers en ressources humaines agréés (CRHA). To combat this trend, there are a few options, he said, including increasing immigration and boosting workforce productivity. But another tactic is to keep older employees working longer.

To that end, pension payments will be adjusted to reward later retirement. Workers who apply for QPP after age 65 will see a monthly increase of 0.7 per cent as of Jan. 1, 2013, up from the current 0.5 per cent boost. Conversely, workers who apply for benefits before age 65 will see the monthly reduction rise from 0.5 per cent to 0.6 per cent in the case of a maximum pension.