The PPMP at a Glance

Highlights of the Actuarial Valuation of the PPMP as at 31 December 2020

New contribution rate

The PPMP members' contribution rate increased from 12.29% to 12.76% on 1 January 2023. The increase follows the deposit, in October 2022, of the Plan's actuarial valuation as at 31 December 2020.

Financial situation of the plan as at 31 December 2020

The table below shows that the financial situation of the PPMP with respect to the benefits accrued paid by members, has increased from a surplus of $724 million as at 31 December 2017 to a surplus of $1307 million as at 31 December 2020. In accordance with the Politique de provisionnement des prestations à la charge des participants du RRPE (provisioning policy of benefits paid by members; French only), the surplus is entirely used to establish a stabilization fund. The improvement in the PPMP's financial situation is mainly due to the returns on the members' fund, which were higher than expected.

Members' contribution rate

The contribution rate must be sufficient to fund the member's portion of the benefits accrued annually and the administration fees paid by members, as well as the amortization of the deficit, if any. This contribution rate applies to the portion of the salary that exceeds 35% of the maximum pensionable earnings (MPE) under the Québec Pension Plan (QPP).

The following table shows that the contribution rate increased from 12.29% to 12.67%. The increase can be explained by the evolution of the members' profile from 2017 to 2020, as well as the changes in the economic and demographic assumptions. The contribution rate of 12.67% will apply for the years 2023 through 2025.

If you would like more information, consult the section regarding the actuarial valuations under RREGOP and the PPMP on Retraite Québec's website.

Return of the members' fund under the PPMP in 2022

The PPMP members' fund generated a return of -7.9% in 2022. The amounts in the fund are invested with the Caisse de dépôt et placement du Québec (CDPQ), in various asset categories.

This negative return for 2022 is due to the sharp decline in the stock markets and the sharp increase in bond yields, which reduced the value of fixed-income investments Therefore, for the PPMP members' fund, the returns of the Public equity portfolio and the fixed-income investments are -11.3% and -15.1% respectively. Real estate, infrastructures and private equity played their diversification role, generating returns of 12.4%, 11.5% and 2.8%.

Table 1 shows the annual returns of the PPMP members' fund since 2013. Over a ten-year period, which ended on 31 December 2022, the fund generated an average annual return of 7.6%.

Table 1

Returns from 2013 to 2021 (percentage)

Table 2 shows the evolution of the value of the PPMP members' fund over the last 10 years. Please note that the significant decrease in the value of the members' fund in 2017 can be explained by the coming into effect of the Act to foster the financial health and sustainability of the Pension Plan of Management Personnel and to amend various legislative provisions. Under the Act, the government is responsible for all benefits payable to beneficiaries who retired before 1 January 2015. However, an amount of $5.1 billion (the portion of the assets regarding commitments to the beneficiaries) was transferred to the consolidated fund in 2017, from the members' fund.

Table 2

Evolution of the value of the PPMP members' fund with the CDPQ (billions of dollars)

Return to work of retirees under the PPMP: end of the easing measures modifying the calculation of the threshold and the pension paid

Since March 2020, retirees under the PPMP returning to work in a position covered by RREGOP and who choose not to contribute to the plan continue receiving their retirement pension in full as well as their salary.

Those who work in a position covered by the PPMP and who choose not to contribute to the plan receive their retirement pension in full as long as the salary paid is not greater than the threshold established for the current calendar year. The date on which the treshold is reached as well as the amount of the threshold differ for each person.

This threshold is determined on 1 January of each year and corresponds to the difference between the reference salary and the retirement pension amount payable if no integration was applied.

In the context of the state of the public health emergency due to the COVID-19 pandemic, an easing measure allowed retirees under the PPMP working in a position covered by the plan to return to work without the salary related to these positions being included in the calculation of the limit.

These were certain positions related to the fight against the pandemic and covered by the two ministerial orders of the health and social services sectors and education sector.

Since 1 July 2022, for the education sector, and 1 January 2023 for the health and social services sectors, for retirees under the PPMP holding employment covered by the PPMP, the salary earned is now included in the calculation of the threshold.

My Account: updated to make your life easier

Retraite Québec has launched a new version of My Account on its website. Its interface has been completely renewed. It is more current and intuitive and offers a personalized approach intended to put you at the centre of communications. Discover the intuitive and secure digital environment, which offers you even more practical features.

The main changes:

• Navigate more easily with visual cues that draw your attention to the new elements and actions that may be required from you.
• Complete the Your Options reply form and track the status of your application for a retirement pension under a public-sector pension plan.
• File your application for a retirement pension under the Québec Pension Plan and track the status of your application.
• See the breakdown of your monthly public-sector pension payments. The information now replaces the Statement of Deposits you received each year.

A digital space connected to your needs

My Account groups everything at the same place. You will find information regarding your pension plan or other public-sector pension plans, the Québec Pension Plan or even Family Allowance. It is to your advantage to use My Account to:

• consult your information and documents, safely and at any time;
• keep abreast of the changes made to your file;
• file your applications online and follow the different processing steps by receiving notifications.

Each year, your Statement of Participation under the PPMP is uploaded to My Account. The document is essential for the financial planning of your retirement. The data indicated on it will allow you to use simulation tools, such as CompuPension and SimulR, which are available via My Account. The tools can help you plan your retirement and make informed choices regarding your projects.

If you are retired, you will find your income tax slips and your annual Statement of Benefits in My Account, which will only be available in this digital space as of December 2024. If you would rather receive your documents by mail, you can choose that communication preference in My Account. You can also request it by contacting our client services.

Go digital

In My Account, you can choose your communication preference. By choosing the 100% digital option, you will not miss anything thanks to notifications. You will receive notifications by email or text message informing you when a document is uploaded to your file or at the different processing steps of your application.

At Retraite Québec, the digital option is practical, safe and essential. Try My Account and you will like it!

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The pension committee members