Pension options

What are the pension options for employees?

The pension options for employees are presented on the Application for Pension Benefit form which you receive following your application for retirement :

The Application for Pension Benefit form may present up to eight choices for the modes of pension payment, in various combinations: level, increased-reduced, guaranteed, and with or without a survivor benefit.

The pension amount that an employee may receive is different for each of these options. For instance, the longer the guarantee period chosen, the lower the lifetime pension. However, the pension amounts payable to the beneficiaries will then be higher. The same applies depending on whether the employee chooses a pension with or without a survivor benefit. Employees must make sure that they understand the impact of the option they choose when they retire, since this choice cannot be changed thereafter.

When an employee has taken partial retirement, the pension guarantee and the survivor option for the pension from the Complementary Account are the same as those in effect for the pension from the General Account on the date the employee applies to receive a pension from the Complementary Account. 

Note: New guaranteed pension periods and survivor options have been offered since November 1, 2013. They have replaced certain options available until October 31st, 2013.

An example of the calculation following the death of a retiree before the end of the guarantee period can be found under the Death of a retiree tab.

Special small pension rule 

When the value of a pension payable to an employee, determined when the employee applies for a pension, is below 20% of the maximum pensionable earnings (MPE) established by the Act Respecting the Québec Pension Plan, only one option is available. There is no monthly pension, it is replaced by a lump-sum benefit. A lump-sum benefit is payable in a single amount.

The same rule applies when the value of the pension payable to a spouse following the death of a retiree is below 20% of the MPE.

Particular conditions, limitations, or exclusions other than those mentioned above may apply to the payment of certain benefits; only the Règlement sur les régimes complémentaires d'avantages sociaux dans l'industrie de la construction, published by the Éditeur officiel du Québec, has official and legal force.Nevertheless, the provisions that apply to a specific event are those in force at the time of this event.