What Kind of Pension Plan is RREGOP? Mid-Career and End of Career

As soon as you start working for the Gouvernement du Québec, whether in the health, education or public service sector, you automatically contribute to a pension plan. To contribute means to pay money into a plan. For most employees, that plan is the Government and Public Employees Retirement Plan (RREGOP). Therefore, this page focuses on this plan.

Defined-benefit pension plan

First, you must know that RREGOP is a defined-benefit pension plan. This means that the retirement pension amount you will receive is based on a predetermined formula. The formula takes into account your number of years of service as well as your average salary before retirement. Therefore, your pension does not depend on the returns generated from the investments that were made with your contributions. That can be reassuring!

How your contributions work

Then, how do your contributions work? They are calculated based on a rate that is reassessed every three years. This is to ensure that your plan remains in good health, that is, that it has the funds necessary for people to receive the pensions promised. That is also reassuring. You can find out how much you contribute to RREGOP on your payslip. Furthermore, your contributions reduce the income on which you pay income tax, just like an RRSP.

Being a member of RREGOP during your career means that when you retire, you can count on a pension under this plan, of which your employer will pay half. Your contributions are used to fund the other half. You will also be able to count on the pension under the Québec Pension Plan, the Old Age Security pension and the savings you have accrued.

Thanks to RREGOP, you need to save less to maintain your current standard of living in retirement, especially if you work for the government for a long time. This is why we can say that your pension plan is part of your global salary.

When can you receive a pension?

Now, you may be wondering when you will be able to receive your pension. We talk about it in detail on the When can you receive your pension under RREGOP and how much will you receive? web page. You will be able to receive your pension when you meet one of the following three requirements:

• You are age 61.
• You have accrued at least 35 years of service.
• You are at least age 60, and the sum of your age and years of service equals 90.

If you would like to retire before meeting one of the requirements, you can choose to receive a reduced pension for life as of age 55. Your pension will be reduced because you will receive it for a longer period of time.

Other benefits of RREGOP

In addition to your employer's contribution, your plan is advantageous because:

• your retirement pension is guaranteed and you will receive it for life;
• your pension will also be adjusted in part to the cost of living each year;
• when you die, your plan provides for a pension for your spouse. If you do not have a spouse, your heirs may receive money.

RREGOP is a great asset for your financial security in retirement. To get an idea of the pension you could receive should you continue contributing, consult your Statement of Participation under RREGOP in My Account.