Legislative amendment to the RPMCM

Changes to your public-sector pension plan

The Retirement Plan for Mayors and Councillors of Municipalities (RPMCM) was amended by the Act to amend various municipal-related legislative provisions concerning such matters as political financing (S.Q. 2016, chapter 17), assented to on 10 June 2016.

The amendments are as follows.


Creation of a supplemental benefits plan (SBP)

Affected pension plan: RPMCM

Effective date: 10 June 2016

Further to legislative amendments that took effect in June 2016, an Order in Council was made on 25 January 2017 for the purpose of creating a supplemental benefits plan (SBP). The SBP will make it possible to ensure the payment of benefits under the RPMCM. The Order in Council has effect from 1 October 2016.

As a result, once the RPMCM fund is depleted, Retraite Québec will pay 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 and the manner in which the contributions are to be calculated are set out in the regulation accompanying the Order in Council.

All benefits payable under the RPMCM, including those paid to spouses in the event of partition of family patrimony, will become payable under the SBP, according to the same procedures and taking into account applicable tax laws.

Retirement income under a SBP is not eligible for 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 former spouse of a person who contributes to the RPMCM. Amounts related to the partition of family patrimony cannot be transferred to an LIRA, LIF or other investment instrument; the former spouse receives the amount by cheque or direct deposit.

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;
  • payment for a compensatory allowance.

Note that Retraite Québec is responsible for administering the SBP.

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