RREGOP: What Happens to Your Retirement if you Change Jobs?

As a rule, if you continue working for the Gouvernement du Québec, you continue to contribute and accrue years of service under a public-sector pension plan.

If you stop working for the Gouvernement du Québec, nothing is lost. Start by verifying whether you can receive a retirement pension now. We talk about the requirements to meet on the When can you receive your pension under RREGOP and how much will you receive? web page. Otherwise, here are the options provided for by RREGOP.

You have been working for the government for less than two years

If you have been working for the Gouvernement du Québec for less than two years and are under age 55, you can request a refund of your contributions, with interest. In that case, you should ideally request for a transfer into an RRSP. As a result, your contributions remain savings for your retirement and you do not pay tax on the refund amount.

You have been working for the government for two years or more

Receive a pension at age 65

If you have been working for the Gouvernement du Québec for two years or more, you will still be entitled to a retirement pension.

However, you can only start receiving the pension as of age 65, that is, later than if you had continued working for the government. This is what we call a deferred pension. Therefore, you will not be eligible for a pension as soon as you meet one of the three requirements.

You could also choose to receive a reduced pension for life as of age 55. We explain how it will be reduced on this web page about RREGOP.

An interesting advantage of choosing a deferred pension is that it will be fully adjusted to the cost of living each year between the end of your membership under RREGOP and the time you begin receiving your pension. It is worth thinking about!

Transfer the amounts accrued under your pension plan into an LIRA or LIF

If you resign before age 55, you could also request that the equivalent of the value of your pension be paid into a locked-in retirement account (LIRA) or a life income fund (LIF). The money deposited into that type of account can only be used to provide you with a retirement income. It is important to make your request with Retraite Québec before you turn 55.

By making that choice, you become responsible for managing that amount so that it provides you with sufficient income in retirement. That is, that you accept the risk that your money may lose its value over time due to inflation or because your investments generate poor returns.

Your new employer offers a pension plan

Regardless of when you began working for the Gouvernement du Québec, there is one more option. If your new employer offers a pension plan and there is a transfer agreement between that plan and Retraite Québec, you could request for the service you have accrued under RREGOP to be recognized by your new pension plan. You can consult the list of organizations and plans affected by a transfer agreement. The list includes Hydro-Québec, the Government of Canada and other provincial governments, certain unions, and certain cities.

This type of transfer is possible both ways, that is, if you have previously worked for an employer that has a transfer agreement, you can transfer the service you accrued under your former pension plan to RREGOP. The advantage of doing so is that you will be able to retire sooner. For more information, consult the Transfer of a pension plan to a new employer web page.

When should you make your choice?

In any case, you do not have to decide as soon as you leave. You must wait at least 210 days after you leave to request the refund of your contributions or a transfer to an LIRA.

It is important to know that if you retain your benefits under RREGOP, that is, if you do nothing, you will retain your years of service. If you then return to work for the Gouvernement du Québec, your new years of service will be added to those you already had. Remember that each year of service increases your pension, half of which is funded by your employer. Think about it: you never know what the future holds.