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Amendments to the Québec Pension Plan (QPP) │ Elimination of the penalty on retirement pension for disabled persons aged 65 and older

News Release

On January 1, 2024, the new provisions of the Act Respecting the Québec Pension Plan came into effect. These changed the way Retraite Québec (RQ) disability benefits payable under the Québec Pension Plan (QPP) are paid to disabled persons aged 60 to 64.

The retirement pension replaces the variable portion of the disability pension paid by RQ to people with disabilities aged 60 and over. For these people, the penalty applicable to their retirement pension has been reduced since January 1, 2024. People with disabilities aged 60 and over who receive a retirement pension from the QPP will see the amount of their pension reduced to a maximum of 24%, instead of 36%.

The Quebec government plans to amend the QPP in January 2025.

In its 2024-2025 budget, the Quebec government announced that it intends to eliminate, as of January 1, 2025, the reduction in retirement pensions for disabled people aged 65 and over.

The removal of this penalty would result in an increase in the retirement pension for people aged 65 and over who received a disability pension between the ages of 60 and 64, since the government would grant them a full retirement pension at the age of 65.

On its website, RQ makes the following clarification as to what will happen next: “The change being considered must first be specified in a bill. In the meantime, the rules of the QPP remain the same and beneficiaries of a retirement pension who already received a disability pension do not have any steps to take.”

How does this affect disability benefits paid by iA Financial Group?

This announcement from the government has no effect on disability benefits paid by iA to disabled persons aged 60 to 65.

To learn more about the planned changes to the QPP, please see the 2024-2025 Budget page on the Québec ministère des Finances website. You can also refer to the Retraite Québec webpage Adjustment of the retirement pension for disabled persons.

If you have any questions about the disability benefit paid by iA, please contact your iA Financial Group Client Relationship Manager.

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