Pension plans and partition
Finding out the value of your pension plans allows you to make an informed decision for the purposes of partition in the event of a separation. A personalized assessment can be provided on request, at any time in your separation process and free of charge.
This information step is not binding. Even a person thinking about renouncing partition should be informed to better understand the effects of their decision.
Two elements determine the rules for partition of accrued benefits and employment earnings recorded under the names of each partner during the union:
the type of pension plan and the type of union.
Making an inventory of pension plans
The inventory of pension plans under which each person was a member during the union must be shared so that an overall picture can be drawn. This simple exercise allows each person to familiarize themselves with the name of the plans and to prepare the steps to take.
The person who worked in Québec contributed to the Québec Pension Plan (QPP).
The Québec Pension Plan is a compulsory public insurance plan for workers age 18 and over whose annual employment income is greater than $3500. The Plan is funded by contributions made by workers, deducted from their salary, and by the employer. Contributions are collected by Revenu Québec and are administered by the Caisse de dépôt et placement du Québec.
The earnings recorded under the
QPP by each spouse can be partitioned following a separation.
The person who worked in the Québec public service, education or health and social services sector probably contributed to one of the following pension plans:
The benefits accrued during the union by the person who contributed to the plan can be partitioned following a separation.
The person who worked in the private, municipal or university sector may have contributed to the supplemental pension plan offered by his or her employer, often called pension fund.
Employers can offer different types of plans to their employees:
- The
simplified pension plan is a defined-contribution pension plan administered by a financial institution.
- The
defined-contribution plan is a plan where the retirement income is not determined in advance. It depends on the amounts credited to the account of employees.
- The
defined-benefit plan is a plan where the amount of the retirement pension is established according to a specific formula (for example: a percentage of salary multiplied by the years of service recognized by the plan).
The benefits accrued during the union by the person who contributed to the plan can be partitioned following a separation.
The type of union determines the steps for partition
In Québec, there are different ways to be united: de facto union, civil union and marriage (religious or civil). Each type of union refers to separate rights and legal obligations. Where spouses wish to end their union, different rules for partition will determine the steps to take.
Québec Pension Plan
The Québec Pension Plan is a compulsory public insurance plan for workers age 18 and over whose annual employment income is greater than $3500. The plan is funded by contributions made by workers, deducted from their salary, and by the employer. Contributions are collected by Revenu Québec and are administered by the Caisse de dépôt et placement du Québec.
Public-sector pension plans
Public-sector pension plans affect workers in the education, and health and social services sectors, and employees in the Québec public service. The 2 main plans are
RREGOP (Government and Public Employees Retirement Plan) and the
PPMP (Pension Plan of Management Personnel).
Pension plans of the private, municipal and university sectors
Pension plans in the private, municipal and university sectors are supplemental pension plans offered by the employer. Employers can offer different types of pension plans to their employees: the simplified pension plan, the defined-contribution plan and the defined-benefit plan.
Voluntary retirement savings plans
The voluntary retirement savings plan (VRSP) affects workers who do not benefit from a pension plan offered by the employer, self-employed workers and business owners. Membership in that type of plan is voluntary.
Québec Pension Plan
The Québec Pension Plan is a compulsory public insurance plan for workers age 18 and over whose annual employment income is greater than $3500. The plan is funded by contributions made by workers, deducted from their salary, and by the employer. Contributions are collected by Revenu Québec and are administered by the Caisse de dépôt et placement du Québec.
Public-sector pension plans
Public-sector pension plans affect workers in the education, and health and social services sectors, and employees in the Québec public service. The 2 main plans are
RREGOP (Government and Public Employees Retirement Plan) and the
PPMP (Pension Plan of Management Personnel).
Pension plans of the private, municipal and university sectors
Pension plans in the private, municipal and university sectors are supplemental pension plans offered by the employer. Employers can offer different types of pension plans to their employees: the simplified pension plan, the defined-contribution plan and the defined-benefit plan.
Voluntary retirement savings plans
The voluntary retirement savings plan (VRSP) affects workers who do not benefit from a pension plan offered by the employer, self-employed workers and business owners. Membership in that type of plan is voluntary.