Legislative amendment to the RPMCM
Changes to your pension plan
The Retirement Plan for Mayors and Councillors of Municipalities
(RPMCM) has been amended by the Act to amend various municipal-related legislative provisions concerning such matters as
political financing (S.Q., 2016, c. 17), which was assented to on June 10, 2016.
The amendment is presented below.
Implementation of a supplemental benefits plan (SBP)
Affected pension plan: RPMCM
Effective date: June 10, 2016
The government may issue a decree to create a supplemental
benefits plan (SBP), which would make it possible to ensure the
payment of benefits under the RPMCM. The decree could take effect as of October 1, 2016.
Therefore, once the RPMCM fund is depleted, Retraite Québec will pay out benefits from the SBP.
The amounts required to ensure payment from the SBP will come
from annual contributions from municipalities. A list of the
affected municipalities, as well as the amount of annual
contributions to be paid, will be outlined in the decree
establishing the SBP.
All benefits payable under the RPMCM, including those paid to
spouses in the event of partition of family patrimony, will become
benefits payable under the SBP, according to the same procedures and
taking into account the applicable tax laws.
Retirement income under a SBP is not eligible for pension income
splitting. Therefore, beneficiaries under the RPMCM will no longer
be able to split their retirement income with their spouse in order
to reduce the amount of their income tax.
In addition, in the event of partition of family patrimony,
Retraite Québec must withhold income tax from amounts to be paid to
the spouse or the spouse of a person who contributes to the RPMCM.
Lastly, not all benefits paid under the SBP can be surrendered or
seized. However, a maximum of 50% of the benefits paid can be seized for:
- payment of benefits in the event of partition of family patrimony;
- a support-payment debt;
- a compensatory allowance.
Retraite Québec is mandated to administer the SBP.