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Calculation of the Pension from the General Account

Employees accumulated pension benefits in this account for hours worked before 2005.

The General Account is a “defined benefits” account. This means that the pension received by the employee may be determined in advance using a specific calculation method defined in the Règlement sur les régimes complémentaires d’avantages sociaux dans l’industrie de la construction.

Thus, in the construction industry, the pension from the General Account accumulated by employees is calculated on the basis of their adjusted hours worked (see Adjusted Hours section below) during each year and the applicable annual pension rate. The pension rate may vary from year to year.

Simplified example – calculation of pension from the General Account accumulated before 2005
Hours worked in Annual pension rate per 1,000 adjusted hours worked Employee’s number of adjusted hours worked Calculation for each year during which the employee worked Accumulated pension
1989 $496.84 1 000 1000 x $496.84 / 1000 $496.84
1990 $477.72 500 500 x $477.72 / 1000 $238.86
1991 $447.57 2 000 2 000 x $447.57 / 1000 $895.14
1992 $426.26 1 500 1 500 x $426.26 / 1000 $639.39
Annual pension from the General Account payable upon retirement $2,270.23

The annual Pension Statement shows the value of the employee’s pension benefit in the General Account.

Hours worked

Hours worked for the pension plan are considered to be:

  • The hours forwarded by employers, for which the appropriate contributions have been paid to the CCQ;
  • Hours credited to the employee for work done outside Québec under a reciprocal transfer agreement, where amounts have been transferred to the CCQ;
  • Hours credited for certain individuals who have already participated in the pension plan as employees and who might, under certain conditions, voluntarily continue to do so (for example, company officers).

Since 2005, hours worked have continued to accumulate in employees’ files, since they are used to determine the age at which an employee may apply for retirement.

Adjusted hours

Adjusted hours are used to calculate the pension from the General Account. Before 2005, the hours were adjusted to take account of the amount of the contributions paid into the pension plan. For example, from August 1982 to October 1985, the Québec government’s Corvée-Habitation program to boost residential construction was financed in part by contributions from industry employees. Part of the contributions were paid into this program, and the total amount paid into the pension plan was reduced by the same amount. The number of adjusted hours was thus lower than was the number of hours worked during this period.

Since no new pension amounts have accumulated in the General Account since 2005, the number of adjusted hours has stopped increasing. This means that for many employees, it is normal that the difference between the total adjusted hours and the total hours worked will continue to increase.

When an employee has received a partial refund under the provisions of the Regulation in effect before 1997, adjusted hours paid are recorded in his or her file. They reduce the amount of the pension in the General Account in proportion to the refund received.

The pension supplement from the General Account

A supplement of 12.5% is added to the pension from the General Account at the time of retirement and is part of the pension payable to employees.

Example of calculation – supplement from the General Account
Annual pension from the General Account for an employee $20,000
12.5% supplement $2,500
Annual pension payable  $22,500

 

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