Regulatory amendments to certain public-sector pension plans
Changes to your public-sector pension plan
The Act respecting the implementation of recommendations of the
pension committee of certain public sector pension plans and
amending various legislative provisions was assented to on 21 March 2018.
The legislative amendments mainly concern:
Definition of absence without pay
Pension plans affected: RREGOP, PPMP, TPP, CSSP, PPCT
Effective date: 14 June 2002
An absence can be considered an absence without pay provided all
the following conditions are met:
- It must be provided for in the member's conditions of employment.
- It must be authorized by the employer.
- The member must not have received any remuneration during
the period in question.
- The member would or could have worked had it not been for
the absence.
According to this definition, a temporary layoff does not
constitute an absence without pay. However, a temporary layoff for
which an application for buy-back was filed with Retraite Québec
before 15 February 2018 is considered an absence without pay if no final decision was rendered before that date. Such a layoff shall be
permanently recognized as an absence without pay whether or not the
buy-back proposal further to the application is accepted.
Retroactive recognition of service following a change in
employment status or employer
Pension plans affected: RREGOP, PPMP
Effective date: 21 March 2018
Participation in the RREGOP or the PPMP can be recognized
retroactively under certain conditions and upon request:
- following a change in employment status from
self-employed worker to employeeOR
- once it is established that the actual employer is in
fact subject to a public sector pension plan.
Retraite Québec must receive the application for retroactive
recognition of service no later than 36 months following the first
day covered by the application. Service will then be recognized, and
contributions without interest will be paid. The employee's
contributions will be collected by the employer and paid into the
pension plan's fund.
Applications filed with Retraite Québec after the 36-month time
limit has expired will be rejected.
If the application for retroactive recognition of service is
further to a decision by a competent authority, that is:
- the Tribunal administratif du travail (TAT)
- the Canada Revenue Agency (CRA)
- Revenu Québec, or
- a higher instance whose decision is related to that of
the TAT or either of the revenue agenciesOR
- an out-of-court settlement reached following a
petition to the TAT
no participation prior to the date on which the petition was
filed with the TAT, or the date of the decision in other cases, will
be recognized by Retraite Québec, even if the period of service
falls within the preceding 36 months. This means that the
application will be rejected, and the employer will not be able to
collect contributions for that period.
However, an application for the buy-back of service accrued and
recognized following a change in employment status or employer can
be filed for any period of service that is not retroactively recognized.
Buy-back of service accrued and recognized following a change in
employment status or employer
Pension plans affected: RREGOP, PPMP
Effective date: 21 March 2018
A person can buy back a period of service if a decision
by a competent authority [1] or an out of court settlement
reached following a petition to the TAT shows that, during the
period in question:
- he or she was covered by the plan because of his or
her employment status; in other words, the decision shows that
his or her employment status is recognized as employee rather
than self-employed worker.OR
- his or her actual employer was subject to the RREGOP or the PPMP; in other words, the decision identifies the
person's actual employer for the period to be bought back as an
employer subject to either pension plan.
The period to be bought back could be limited to 15 or 18 years
of service, depending on the situation.
It excludes periods during which the person contributed to a
pension plan, including supplemental pension plans (SPPs).
Periods during which the person received salary insurance
benefits or during which the person was on maternity leave can be
bought back.
Buy-backs allow employees to be credited the salary they would
have received or to which they would have been entitled under the
working conditions that should have applied as employees of an
employer subject to the RREGOP or the PPMP.
Payment methods for buy backs
Pension plans affected: PPMP, PPPOCS
Effective date: 21 March 2018
Certain periods can be bought back using the employee's bank of
sick days, if the working conditions so provide. This information
can be obtained from the employer.
Partition of benefits accrued under a pension plan when de facto
spouses stop living together
Plans affected: RREGOP, PPMP, RPSO, PPPOCS, TPP, CSSP, PPCT, PPEMO, SPMSQ, RPCHCN, PPFEQ
Important
As of 1 January 2019, the partition of benefits accrued under a public-sector pension plan is possible for de facto spouses in the event of the breakdown of their union. For more information, see the terms and conditions on our website.
Effective date: To be determined by order in council at a
later date
In cases where de facto spouses who qualify as such stop living
together, partition of the benefits accrued under a public-sector
pension plan subject to this legislative amendment will become
possible starting on the effective date set by the government.
The former de facto spouses must agree to partition within 12
months of the date on which the union broke down. The agreement is
subject to certain legal conditions. No more than 50% of the value
of the benefits accrued under the plan can be awarded to either spouse.
If the de facto spouses stopped living together after 31 August 1990 but before the amendement took effect, they may agree to
partition within 12 months of the effective date of the amendement.
They will be able to obtain a statement of benefits accrued as at
the date on which they stopped living together. The conditions for
obtaining this statement of benefits will be provided for by law.
Simplification of plan membership for a member of the
Lieutenant-Governor's, a Minister's or a member of the National
Assembly's staff
Pension plans affected: RREGOP, PPMP, TPP, CSSP
Effective date: 21 March 2018
The application for membership in the plan must be filed by the
member directly with Retraite Québec. It is no longer necessary that
the government adopt an order-in-council to that effect.
Participation in the plan begins on the date indicated in the
application. The starting date can be up to 12 months prior to the date on which the application is received by Retraite Québec, but
cannot be before the date on which the person became a member of the
Lieutenant Governor's, a Minister's or a member of the National
Assembly's staff.
The sharing of costs under the Pension Plan of Peace Officers in
Correctional Services (PPPOCS)
Pension plan affected: PPPOCS
Effective date: 1 January 2025
As of 2025, the cost of the plan will be shared equally between
members and employers. For years of service between 2013 and 2024, 46% of the cost is payable by members, and 54% by employers.
- Note 1That is, the Tribunal administratif du travail (TAT), the Canada Revenue Agency (CRA), Revenu Québec, a higher instance whose decision is related to that of the TAT or the agency concerned, or the RREGOP/PPMP arbitration tribunal. Back to reference