Amount of the Pension
What is the amount of the pension payable?
The amount of the pension payable is different for each employee. It depends on the pension calculation performed, the application of the rules for eligibility for retirement and the pension option chosen at the time of retirement. The amounts are different for each option given on the Application for Pension Benefits form.
Are the amounts given on the form guaranteed?
The pension amounts given on the form are guaranteed as long as the form is returned before the end of the 60-day deadline. The deadline date is given on the form.
Employees who do not return the form before the given deadline will have to apply again. The options may then be different and the amounts calculated may be higher or lower than those given on the first form.
If an employee’s hours file has been adjusted or the date of birth used in the calculations was not accurate, the pension amounts given on a form may be revised.
Can the pension be reduced once an employee begins to receive it?
Once a pension has begun to be paid to an employee (or a surviving spouse), it is guaranteed. It is payable for life.
However, a downward correction made to the hours file less than two years after the beginning of payments may reduce the amount of the pension. If the correction is made after the two-year period, the pension is not reduced.
Pensions received from other plans (for example, the Quebec Pension Plan, the Old Age Security Pension) do not change the amount of the pension paid by the construction industry plan.
Is the pension indexed to the cost of living?
The pension is not indexed to the cost of living. Indexing may be granted when the plan’s financial situation permits. If there is indexing, it is done at the beginning of the year and pensioners are informed of this in advance by mail.
Is the pension taxable?
The retirement pension is taxable. The pension amounts before taxes appear on the Demande de prestations form. The CCQ must make tax deductions at source every month. If the pension amount is low, it is also possible that no tax deduction will be made from the payment. This does not mean that these retirees will not have to pay income tax when they prepare their tax return. They may ask the CCQ in writing to deduct amounts at source or to increase the amounts already deducted on the pension, for federal or provincial income tax. The Personal Tax Credits Return forms must then be filled out and sent to the CCQ: the TD-1 form for federal income tax and TP-1017 for provincial income tax.
It is important to note that specific conditions, limitations, or exclusions may apply to the payment of certain benefits; only the Règlement sur les régimes complémentaires d’avantages sociaux dans l’industrie de la construction has legal standing. This regulation is modified regularly in order to comply with federal and provincial statutes. The provisions that apply are those in force at the time of each event.