Quebec pension plan enhanced in January

The government is reminding the public that the Québec Pension Plan will be enhanced effective Jan. 1, 2019 for all Quebec workers. It will enable future generations of retirees to increase their savings and thus be able to improve their retirement income level.

The Québec Pension Plan will be composed of two parts: the basic plan, that is to say the plan put in place in 1966, and the supplementary plan, which is the result of the plan's improvement.

The annuity increase will be gradual and will be based on the number of years of contribution to the supplemental plan. People entering the labor market today will benefit from the largest increase in their retirement pension, while those who retire in the coming years will benefit from an increase in their pension in proportion to their number of years of contribution to this additional plan.

It should be remembered that the Act enhancing the Québec Pension Plan and amending various legislative provisions relating to retirement was passed unanimously by the National Assembly last February.

In 2019, the contribution rate to the Québec Pension Plan will be 11.10 per cent, which is 10.80 per cent for the basic plan and 0.3 pre cent for the supplementary plan. Contributions are paid equally by employers and employees.

The maximum pensionable earnings (MPE), which is the maximum amount a worker will pay next year, will be $57,400 instead of $ 55,900. Contributions are levied on the portion of salary between the $3,500 general exemption and the MPE.

The maximum contribution for an employee will be $2,991, or $2,910 for the basic plan and $81 for the supplemental plan.