Pension credits and paid‑up annuities (RREGOP)
Here are answers to questions often asked by people who are planning their retirement.
Pension credits resulting from a buy-back of service
I bought back years of service performed before I joined the RREGOP. It gave me an annual pension credit of $950. What is that exactly?
If you bought back periods of service earned prior to your membership in the RREGOP, you have what is called a Buy-Back Pension Credit.
This means that we will add an amount to the basic pension we will pay you in regards to the RREGOP. In your case, the amount is $950 if payment of your pension credit begins at age 65.
Can payment of my pension credit begin earlier if I retire before I turn 65?
Yes. If you retire before you turn 65, you may request that payment of your Buy-Back Pension Credit begins on the same date as your retirement pension or on any other date between the date of your retirement and your 65th birthday.
The amount of your pension credit will then be reduced permanently by 0.5% per anticipated month (6% a year) in relation to your 65th birthday. Note that even if the amount of the pension credit is then lower, the fact that it starts being paid earlier can be to your advantage.
Note that if you retire after you turn 65, payment of your pension credit will begin on the date of your retirement. In that case, the amount of your pension credit will be increased by 0.75% a month (9% a year) between your 65th birthday and the date on which you retire.
Can I diminish or eliminate the reduction applicable to my pension credit?
Yes. You can defer the date of the first payment of your pension credit. To do so, after having sent us your application for a retirement pension, you will receive the Your Options reply form and you will have to specify that you wish for us to begin payment of your pension credit on a date other than your retirement date. If the date on which you start receiving your pension credit is close to the date on which it would be payable without reduction, the reduction applicable to your pension credit will be less.
However, before making that decision, it is important to consider the consequences. Opting to receive a slightly higher amount at a later date could mean that you would deprive yourself for several months of funds from which you could benefit as soon as you retire.
Please note that the Your Options reply form is uploaded automatically to My Account. You can therefore file it and track your application in your digital file.
Is my buy-back pension credit indexed?
Yes. Since 1 January 2021, buy-back pension credits are indexed on 1 January of each year following the starting date of the pension. They are indexed based on the Pension Index (PI), which is determined under the Act respecting the Québec Pension Plan.
Can I benefit from an additional amount since I have a pension credit?
Yes. Subject to certain limits, when you retire, you can benefit from additional pensions for the years that entitled you to your pension credit.
What are additional pensions?
There are two types of additional pensions:
- a life annuity, that is, a pension guaranteed for life, linked to pension credit service which, as a rule, corresponds to 1.1% × the average pensionable salary for your 5 best-paid years of service × the number of years or parts of years of service that entitled you to a pension credit.
- a temporary pension linked to pension credit service payable until age 65 (or until death, if it occurs before you reach 65) which, as a rule, corresponds to the following result: $230 × the number of years or parts of years of service that entitled you to a pension credit.
However, the total of the life annuity, temporary annuity and pension credit must not exceed the amount to which those years of service would entitle you if they had been credited for the purpose of basic pension calculation. Where relevant, the amount of the life annuity and the amount of the temporary annuity can be limited.
In addition, the temporary annuity is not taken into account in the calculation of the surviving spouse's pension.
Do the life annuity and temporary annuity replace the pension credit?
No. These 2 annuities are paid in addition to the basic pension and the pension credit.
Can the life annuity and temporary pension to which I am entitled be reduced?
Yes. If you are entitled to an immediate reduced pension, your life annuity and temporary pension are subject to the same reduction as your basic pension, that is, 0.5% for each month of early retirement (6% a year).
If you are eligible for an immediate unreduced pension, your life annuity and temporary pension will not be reduced.
Are the life annuity and temporary annuity indexed?
Yes. Once you begin receiving your life annuity and your temporary annuity, they will be indexed on January 1 of each year according to the rate of increase of the Pension Index (PI) set by the Act Respecting the Québec Pension Plan, minus 3%. If the PI is equal to or lower than 3%, none of the 2 pensions will be indexed.
Pension credits resulting from a transfer from a supplemental pension plan (SPP)
Before becoming a member of the RREGOP I participated in a supplemental pension plan for which I received an annual pension credit of $450 resulting from the transfer of my years of service. What does this mean exactly?
If you were a member of a supplemental pension plan and your years of membership in the plan as well as your contributions for those years were transferred to us, you have what is called an SPP Pension Credit.
This means that we will add an amount to your basic pension paid under the RREGOP.
Note that, in some cases, the value of the pension credit can be expressed as a percentage of the average pensionable salary that is used to calculate your basic pension.
Can payment of my pension credit begin as soon as I retire?
Yes. However, the amount of your pension credit will be reduced permanently if you start receiving it before you satisfy certain eligibility requirements.
Situation 1
Before enrolling in the RREGOP, you were a member of one of the following supplemental pension plan:
- the Régime de rentes de la Société d'adoption et de protection de l'enfance (Centre de services sociaux du Montréal métropolitain — CSSMM);
- the Supplemental Pension Plan for the management personnel and the syndicable but non-unionized employees of the hospital sector;
- the Régime de retraite pour certains employés de la Commission scolaire de la Capitale (CSC);
- the Régime de retraite pour certains employés du Centre hospitalier de l'Université Laval (CHUL);
- the Régime de rente pour le personnel non enseignant de la Commission scolaire de Montréal (CSM).
In your case, the amount of your pension credit will not be reduced if payment begins at age 65.
If payment begins earlier, the amount of your pension credit will be reduced permanently by 0.5% for each month of anticipation (6% a year) in relation to your 65th birthday. Note that even if the amount of the pension credit is then lower, the fact that you begin receiving it earlier can be to your advantage.
Note that if you retire after your 65th birthday, your pension credit will start being paid from the date of your retirement. In that case, the amount of your pension credit will be increased by 0.75% a month (9% a year), included between your 65th birthday and the date of your retirement.
Situation 2
Before membership in the RREGOP, you were a member of a supplemental pension plan other than the five mentioned in Situation 1.
If you were a member of the plan and were working on 31 December 1999, the amount of your pension credit will not be reduced if, when payment begins, you meet one of the following two requirements:
- You are at least age 60 (regardless of your number of years of service)
or - You have at least 35 years of service credited for eligibility purposes (regardless of your age).
If payment of your pension credit begins earlier, the amount will then be reduced permanently by 0.33% per month (4% a year), prior to the date on which you would have met one of the two requirements mentioned above.
If you were a member of the plan but were not working on 31 December 1999, the amount of your pension credit will not be reduced if you start receiving it at age 65.
If payment begins earlier, the amount will then be reduced permanently by 0.5% for each month (6% a year) prior to your 65th birthday. Note that even if the amount of the pension credit will be lower, the fact that you begin receiving it earlier can be to your advantage.
Note that if you retire after your 65th birthday, payment of your pension credit will begin on the date you retire. In that case, the amount of your pension credit will be increased by 0.75% a month (9% a year), for each month between your 65th birthday and the date of your retirement.
Can I diminish or eliminate the reduction applicable to my pension credit?
Yes. You can defer the date of the first payment of your pension credit. To do so, after having sent us your application for your retirement pension, you will receive the Your Options reply form and you must indicate that you want payment of your pension credit to begin on a date other than your retirement date. If the date on which you start receiving your pension credit is closer to the date on which it would be payable without reduction, the reduction applicable to your pension credit will be less.
However, before making a decision, it is important to consider the consequences. Opting to receive a slightly higher amount at a later date could mean that you deprive yourself for several months of funds from which you could benefit as soon as you retire.
Please note that the Your Options reply form is uploaded automatically to My Account. You can therefore file it and track your application in your digital file.
Is my SPP Pension Credit indexed?
Yes. Once you begin receiving your SPP Pension Credit, it will be indexed on January 1 of each year, according to the rate of increase of the Pension Index (PI) set by the Act Respecting the Québec Pension Plan.
Can I benefit from an additional amount since I have a pension credit?
Yes. Subject to certain limits, when you retire, you can benefit from additional pensions for the years that entitled you to your pension credit.
What are additional pensions?
There are two types of additional pensions:
- a life annuity, that is, a pension guaranteed for life, linked to pension credit service which, as a rule, corresponds to 1.1% × the average pensionable salary for your 5 best-paid years of service × the number of years or parts of years of service that entitled you to the pension credit.
- a temporary pension linked to pension credit service payable until age 65 (or until death, if it occurs before you reach 65) which, as a rule, corresponds to the following result: $230 × the number of years or parts of years of service that entitled you to your pension credit.
However, the total of the life annuity, temporary annuity and pension credit must not exceed the amount to which the corresponding years of service would have entitled you if they had been credited for the purpose of basic pension calculation. Where relevant, the amount of the life annuity and the amount of the temporary annuity can be limited.
In addition, the temporary annuity is not taken into account in the calculation of the surviving spouse's pension.
Do the life annuity and temporary annuity replace the pension credit?
No. These 2 annuities are paid in addition to the basic pension and the pension credit.
Can the life annuity and temporary pension to which I am entitled be reduced?
Yes. If you are entitled to an immediate reduced pension, the life annuity and temporary pension are subject to the same reduction as your basic pension, that is, 0.5% for each month of early retirement (6% a year).
If you are eligible for an immediate unreduced pension, your life annuity and temporary pension will not be reduced.
Are the life annuity and temporary annuity indexed?
Yes. Once you begin receiving your life annuity and your temporary annuity, they will be indexed on January 1 of each year according to the rate of increase of the Pension Index (PI) set by the Act Respecting the Québec Pension Plan, minus 3%. If the PI is equal to or lower than 3%, none of the 2 pensions will be indexed.
Paid-up annuities resulting from a transfer from a supplemental pension plan (SPP)
Before I became a member of the RREGOP, I was a member of a supplemental pension plan for which I got $640 of paid-up annuity on the transfer of my years of service. What does this mean exactly?
If you were a member of a supplemental pension plan, and your years of membership in that plan were transferred to us, you have what is called a paid-up annuity. The contributions relating to those years are usually held by an insurance company.
The amount of the paid-up annuity corresponds to the annual amount payable to you by the insurance company, in accordance with your contract.
Can I receive an additional amount since I have a paid‑up annuity?
Yes. Subject to certain limits, you could benefit, when you retire, from additional pensions for the years that entitled you to your paid‑up annuity.
What are additional pensions?
There are two types of additional pensions:
- a life annuity, that is, a pension guaranteed for life, linked to pension credit service which, as a rule, corresponds to 1.1% × the average pensionable salary for your 5 best-paid years of service × the number of years or parts of years of service that entitled you to your paid-up annuity.
- a temporary pension linked to pension credit service payable until age 65 (or until death, if it occurs before you reach 65) which, as a rule, corresponds to the following result: $230 × the number of years or parts of years of service that entitled you to your paid-up annuity.
However, the total of the life annuity, temporary annuity and paid-up annuity must not exceed the amount to which the corresponding years of service would entitle you if they had been credited for the purpose of basic pension calculation. Where relevant, the amount of the life annuity and the amount of the temporary annuity can be limited.
In addition, the temporary annuity is not taken into account in the calculation of the surviving spouse's pension.
Can the life annuity and temporary pension to which I am entitled be reduced?
Yes. If you are entitled to an immediate reduced pension, the life annuity and temporary pension are subject to the same reduction as your basic pension, that is, 0.5% for each month of early retirement (6% a year).
If you are eligible for an immediate unreduced pension, your life annuity and temporary pension will not be reduced.
Are the life annuity and temporary annuity indexed?
Yes. Once you begin receiving your life annuity and temporary annuity, they will be indexed on January 1 of each year according to the rate of increase of the Pension Index (PI) set by the Act Respecting the Québec Pension Plan, minus 3%. If the PI is equal to or lower than 3%, none of the 2 pensions will be indexed.
Pension credits resulting from a transfer under an agreement with another organization for which we do not administer the pension plan
Following my adhesion to the RREGOP, I had my years of service in the private sector where I was working transferred and I obtained a 9.48% pension credit. What does this mean exactly?
If you were a member of the pension plan of another organization and your years of membership in that plan as well as your contributions for those years were transferred to us, you have what is called a Transfer Agreement Pension Credit.
This means that we will add an amount to your basic pension paid under the RREGOP.
How will the amount of my pension credit be calculated when I retire?
If you had employment ties on 31 December 1999, that amount will be equal to 9.48% of the average pensionable salary used to calculate your pension and will not be reduced if, when payment begins, you meet one of the following two requirements:
- You are at least age 60 (regardless of your number of years of service)
or - You have at least 35 years of service credited for eligibility purposes (regardless of your age).
If payment of your pension credit begins earlier, the amount will be reduced permanently by 0.33% for each month of early retirement (4% a year) prior to the date on which you would have met one of the two requirements mentioned above.
If you did not have employment ties on 31 December 1999, that amount will be equal to 9.48% of the average pensionable salary used to calculate your pension and will not be reduced if you start receiving it at age 65.
If payment of your pension credit begins earlier, the amount will be reduced permanently by 0.5% for each month of early retirement (6% a year) prior to your 65th birthday. Note that even if the amount of the pension credit will be lower, the fact that you begin receiving it earlier can be to your advantage.
Note that if you retire after your 65th birthday, the payment of your pension credit will begin on the date you retire. In that case, the amount of your pension credit will be increased by 0.75% a month (9% a year) for each month between the date of your 65th birthday and the date of your retirement.
Can I reduce or eliminate the reduction applicable to my pension credit?
Yes. You can defer the date of the first payment of your pension credit. To do so, after having sent us your application for your retirement pension, you will receive the Your Options reply form and you must indicate that you want payment of your pension credit to begin on a date other than your retirement date. If the date on which you start receiving your pension credit is closer to the date on which it would be payable without reduction, the reduction applicable to your pension credit will be less.
However, before making that decision, it is important to consider the consequences. Opting to receive a slightly higher amount at a later date could mean that you deprive yourself for several months of funds from which you could benefit as soon as you retire.
Please note that the Your Options reply form is uploaded automatically to My Account. You can therefore file it and track your application in your digital file.
Is my Transfer Agreement Pension Credit indexed?
Yes. Once you begin receiving your Transfer Agreement Pension Credit, it will be indexed on January 1 of each year according to the rate of increase of the Pension Index (PI) set by the Act Respecting the Québec Pension Plan.
Can I receive an additional amount since I have a pension credit?
Yes. Subject to certain limits, you could benefit, when you retire, from additional pensions for the years that entitled you to your pension credit.
What are additional pensions?
There are two types of additional pensions:
- a life annuity, that is, a pension guaranteed for life, linked to pension credit service which, as a rule, corresponds to 1.1% × the average pensionable salary for your 5 best-paid years of service × the number of years or parts of years of service that entitled you to your pension credit.
- a temporary pension linked to pension credit service payable until age 65 (or until death, if it occurs before you reach 65) which, as a rule, corresponds to the following result: $230 × the number of years or parts of years of service that entitled you to your pension credit.
However, the total of the life annuity, temporary annuity and pension credit must not exceed the amount to which the corresponding years of service would entitle you if they had been credited for the purpose of basic pension calculation. Where relevant, the amount of the life annuity and the amount of the temporary annuity can be limited.
In addition, the temporary annuity is not taken into account in the calculation of the surviving spouse's pension.
Do the life annuity and temporary annuity replace the pension credit?
No. These 2 annuities are paid in addition to the basic pension and the pension credit.
Can the life annuity and temporary pension to which I am entitled be reduced?
Yes. If you are entitled to an immediate reduced pension, the life annuity and temporary pension are subject to the same reduction as your basic pension, that is, 0.5% for each month of early retirement (6% a year).
If you are entitled to an immediate unreduced pension, your life annuity and temporary pension will not be reduced.
Are the life annuity and temporary annuity indexed?
Yes. Once you begin receiving your life annuity and temporary annuity, they will be indexed on January 1 of each year according to the rate of increase of the Pension Index (PI) set by the Act Respecting the Québec Pension Plan, minus 3%. If the PI is equal to or lower than 3%, none of the 2 pensions will be indexed.
Also consult