Changes to the rules concerning the return to work of retired members of the
PPMP
Following legislative and regulatory amendments which came into effect on 1 March 2020, new rules apply when retired members of the
PPMP return to work and choose not to participate in the plan.
New provisions apply to those who meet all of the following criteria:
- They are a retired member of the
PPMP
- They return to work on 1 March 2020 or after, or are working as of 1 March 2020 following a return to employment
- They hold a position covered by the
PPMP, the Government and Public Employees Retirement Plan (RREGOP) or the Pension Plan of Peace Officers in Correctional Services (PPPOCS)
- They choose to end their
PPMP membership.
Conditions and procedures for a return to work vary depending on the pension plan applicable to the position you hold when you return to work.
If your position when you return to work is covered by the
RREGOP
You will continue to receive your full
PPMP retirement pension in addition to your salary.
If your position when you return to work is covered by the
PPPOCS
If you are returning to work as a manager in a correctional facility or or in a position that belongs to the category of intermediate middle managers of the Institut national de psychiatrie légale Philippe-Pinel, you will be subject to the same rules that apply to a person who returns to work in a position covered by the
PPMP.
However, if you are returning to work in a position covered by the
PPPOCS other than those listed above, you will be subject to the same rules that apply to a person who returns to work in a position covered by the
RREGOP.
If your position when you return to work is covered by the
PPMP
For each calendar year, i.e. between 1 January and 31 December, you will receive your full retirement pension until
your salary exceeds
the threshold established using the calculation below.
Once you reach this threshold, your retirement pension will be reduced in
proportion to the number of days of service that would have been credited to you had you been a member of the plan with respect to the total number of days in the year.
On 1 January of each year, a new threshold is established, and your retirement pension is payable in full until you reach the new threshold, if applicable.
Threshold
The threshold is calculated using the following formula:
- the basic annual salary on the date on which you stopped working, or on the end date of the most recent return to work with contributions, indexed annually according to the rate of increase of the Pension Index (PI) on 1 January of each year
minus - the amount of the yearly retirement pension that would be payable if no reduction were to apply due to integration with the Québec Pension Plan.
If you are returning to work during the same year you ceased to be a plan member because you retired, the threshold is adjusted in proportion to the number of days for which the pension was paid or would have been paid during the year in which you stopped contributing with respect to the total number of days in that year.
The salary used to determine whether the threshold has been reached
For each calendar year, the salary used to determine whether the threshold has been reached corresponds to all eligible unlimited salaries paid to you during the periods you returned to work and chose not to be a plan member. However, salaries paid during periods you returned to work and chose to be a plan member, as well as salaries paid before retirement, are not included in calculating whether the threshold has been reached.
For 2020, salaries paid before 1 March 2020 will not be included in calculating whether the threshold has been reached.
Easing measures during the pandemic
Due to the ongoing state of public health emergency, which was declared due to the COVID-19 pandemic, the Minister of Health and Social Services issued a ministerial order that provides for easing measures for retired members of the
PPMP. Under the order, retired members of the
PPMP who choose not to contribute to the plan upon their return to work can return to certain employment under the
PPMP in the health and social services sector, without their salary being included in the calculation of the threshold where the return to work is linked to the pandemic.
If you are a retired member of the
PPMP and plan on returning to work in the public sector, you should first contact your employer for information regarding the work conditions that apply to your retirement pension.
Retraite Québec is doing everything it can to achieve its objectives during the pandemic
Although the pandemic may have caused delays in the organization's fulfilment of its commitments, Retraite Québec's priority has always been to maintain payment of benefits granted under its different business sectors and to limit the financial impact on beneficiaries and pension plans, and it has done so successfully.
In the early days of the pandemic, Retraite Québec categorized certain payments as essential services. Considering the effect on its clientele and the financial impact on beneficiaries and pension plans, the organization ensured the following:
- Continued payment of active benefits
- Activities of the Centre de relations avec la clientèle (where priority is given to payment-related questions)
- Processing of new applications deemed a priority.
We ensured income continuity, and retirement pensions were successfully processed overall. The vast majority of the client services commitments in the
Service Statement are either currently being honoured or will be honoured in 2020.
However, certain activities, such as those related to applications for buy-backs of service under public-sector pension plans, have been impacted by the pandemic. Since these applications are not associated with retirement pension payments, the delay to process applications does not have a financial impact on members. Moreover, in calculating the total cost of a buy-back, Retraite Québec takes into account the rate in effect on the date on which we receive your application and not the date on which we process it. All members impacted by processing delays have been notified.
Highlights of
PPMP's actuarial valuation at 31 December 2017, published in December 2019
New contribution rate
On 1 January 2020, the contribution rate of members went from 12.82% to 12.29%, in accordance with the results of the
PPMP actuarial valuation at 31 December 2017, filed in October 2019. The main results of the valuation are set out in the next section.
Moreover, in accordance with the rules in effect since 2012, the government and self-employed workers pay a contribution into the members' fund. For 2018 to 2022, this payment is equivalent to 3 times the difference between the contributions effectively paid by members and the contributions required based on the most recent actuarial valuation.
Members' contribution rate and government contributions
Members' contribution rate and the factor used to calculate contributions by the government and self-employed workers apply to the portion of the employee's salary that exceeds 35% of the maximum pensionable earnings (MPE) for the Québec Pension Plan.
The amount of the contributions by the government and self-employed workers is subject to a minimum and maximum limit. Since the factor used to calculate the amount of the contributions is 0 for 2020 to 2022, the amount of the contributions corresponds to the loss incurred by the members' fund because of the transfer of members from the
RREGOP during the year in question.
Results of the actuarial valuation at 31 December 2017
The following table shows that the
PPMP's financial situation with respect to members' commitments went from a $282 million deficit at 31 December 2014 to a $724 million surplus at 31 December 2017, which represents 10.7% of the actuarial value of the vested and payable benefits in the members' fund at 31 December 2017. The entire surplus was used to create a stabilization fund. The improvement in the
PPMP's financial situation is attributable mainly to the returns of the members' fund, which were higher than expected in 2012 to 2017, as well as to the amounts paid into the members' fund by the government and self-employed workers in 2015, 2016 and 2017.
1. Data is from the amended actuarial valuation filed in June 2017.
Updated actuarial valuation published in June 2020
Also, an
actuarial valuation at 31 December 2017 updated to 31 December 2019 was produced in June 2020, showing a $664 million surplus, which corresponds to 7.9% of the actuarial value of the vested and payable benefits in the members' fund at 31 December 2019.
PPMP's members' fund: 10.6% return in 2019, and -1.3% return for the first half of 2020
The last issue of
The
PPMP at a Glance, published in May 2019, presented the return of the
PPMP's members' fund for 2018. This issue presents the fund's return for 2019 and the first half of 2020.
Return for 2019
The
PPMP's members' fund yielded a return of 10.6% in 2019. The amounts in the fund are invested with the Caisse de dépôt et placement du Québec (CDPQ), in various asset categories.
he stocks category yielded the best return in 2019 (15.1%). The fixed-income assets category yielded a higher than expected return (9.4%). Only one portfolio yielded a negative result (properties, -2.7%).
Return for the first half of 2020
In the first half of 2020, the
PPMP's members' fund yielded a return of 1.3%. Since the economy was significantly impacted by the pandemic, fixed-income assets yielded the highest return during this period (3.5%). The other asset categories yielded a negative return in the first half of the year.
Table 1 shows the annual returns of the
PPMP's members' fund since 2010. Over the 10‑year period ending on 30 June 2020, the fund yielded an average annual return of 8.7%.
Table 1
Evolution of returns from 2010 to June 2020 (percentage)
* Data for 2020 includes only the results for the first half of the year, i.e. from January through June.
Table 2 shows the evolution of the value of the
PPMP's members' fund over the past 10 years. The significant decline in the value of the members' fund observed 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. The Act stipulates that the government is responsible for paying all benefits to beneficiaries who retired before 1 January 2015. In return, $5.1 billion (the portion of assets relating to its obligations with regard to these beneficiaries) was transferred to the government from the members' fund in 2017.
Table 2
Evolution of the value of the
PPMP's member's fund
at the CDQP (in billions of dollars)
* Value at 30 June 2020
Do you need to send a document to Retraite Québec? Do it online!
Sending a document online 
is a service that is safe and easy to use. It allows you to send us documents electronically. You can use this service to send us applications that cannot be sent through other
online services , or to send us documents, including supporting and medical documents. This service is available 24/7.
In order to offer you the most satisfying client experience, Retraite Québec is currently working on other major digital projects.
Did you know?
Retraite Québec serves nearly 6 million Quebeckers by administering the Québec Pension Plan, public-sector pension plans and Family Allowance.
As a result, it has to process a large amount of correspondence. For example, in 2019, Retraite Québec received more than 577 000 paper and electronic documents from its clients, partners and employers.
You can now submit your application for a retirement pension online
Retraite Québec is constantly working to improve its services to be more responsive to its clients' expectations. That is why you can now fill out your application for a retirement pension and send it to Retraite Québec using the
Sending a document online service.
Retraite Québec will contact your employer(s) to validate your retirement date (date on which you stop working) and to obtain the information needed to process your application.
Don't forget to notify your employer of the date on which you plan to retire. You must file your application for a retirement pension
at least 90 days before the date on which you stop working. This will avoid any delay in the processing of your application.
The new Statement of Participation: Easier to read and understand
Retraite Québec sends public-sector pension plan members an annual
Statement of Participation . Since the fall of 2019, improvements made to the form and content of the statement have made it easier to understand.
The statement provides the information your employer sent us in its most recent annual return. Consequently, your next Statement of Participation will contain information for 2019.
Due to the exceptional situation resulting from COVID-19, you can consult your next statement only in
My Account in the spring of 2021.
You will also find an overview of the retirement pension amounts to which you could be entitled if you retire on the date on which:
- you become eligible for a retirement pension;
- you become eligible for an unreduced retirement pension;
- you turn 65, i.e. when your
PPMP retirement pension is integrated with the Québec Pension plan.
Keep your Statements of Participation. They will help you plan for retirement.
An estimate of your retirement pension if you are eligible for a pension within the next 4 to 24 months
Retraite Québec recently amended its
Service Statement with regard to applications for pension estimates under a PSPP. You can now apply for a pension estimate under a PSPP if you are eligible for a retirement pension within the next
4 to 24 months, instead of the next 4 to 14 months.
30 years of retirement: Something to think about!
Quebeckers spend twice as much time in retirement as they did 50 years ago! It is very likely that your retirement will last almost 30 years. That is why Retraite Québec offers tools to help you prepare for this major life project:
- The leaflet
Destination Retirement, briefly describes the aspects you need to consider to make an informed decision about retirement.
- The
SimulR and
CompuPension calculation tools: The first explains in just a few clicks the steps involved in retirement planning and the amount you need to set aside for your retirement project; the second provides a customized and comprehensive portrait of your financial situation at retirement.
-
Retirement Planning Information Sessions (RPIS), if you intend to retire within the next 5 years. These sessions are offered in collaboration with partners.
These tools will help you make the right decisions!
Members of the
PPMP pension committee
| Bernard Tanguay | Independent member, Pension Committee Chair |
| Michelle Bourgeois | Ministère de l'Éducation et de l'Enseignement supérieur |
| France Breton | Ministère des Finances |
| Anne-Marie Chiquette | APER santé et services sociaux |
| Nadyne Daigle | Regroupement des associations de cadres en matière d'assurance et de retraite |
| Carole Doré | Association des cadres supérieurs de la santé et des services sociaux |
| Benoit Dufresne | Secrétariat du Conseil du trésor |
Mathieu
Ferland-Lapointe | Secrétariat du Conseil du trésor |
| Isabelle Garneau | Secrétariat du Conseil du trésor |
Maryse
Gauthier-Gagnon | Secrétariat du Conseil du trésor |
| Anne Gosselin | Alliance des cadres de l'État |
| François Labbé | Retired
PPMP member |
| Josée Lamontagne | Coalition de l'encadrement en matière de retraite et d'assurance |
| Chantal Marchand | Association des gestionnaires des établissements de santé et de services sociaux |
| Kathia Roy | Ministère de la Santé et des Services sociaux |
| Charles Simard | Association des cadres des collèges du Québec |
| Marie-Ève Simoneau | Ministère de l'Éducation et de l'Enseignement supérieur
|
Contact us
www.retraitequebec.gouv.qc.ca
By telephone
Québec region: 418 643-4881
Toll-free: 1 800 463-5533
By fax: 418 644-8659
By mail:
Retraite Québec
Régimes de retraite du secteur public
Case postale 5500, succursale Terminus
Québec (Québec) G1K 0G9