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Termination of Plan Membership

Employees who have stopped working in the construction industry and to whom no hours worked have been credited for the 24 consecutive months immediately preceding their application, have two choices.

Choice 1

They may keep their pension benefits in the plan and wait until they reach the age at which they become eligible for a pension.

Choice 2

They may choose to receive a benefit upon termination of plan membership, as long as they are not eligible for a normal or early pension from the plan at the time of application.

A change to the construction industry pension plan will come into effect on December 31, 2017. See details here.

What must an employee do to receive a benefit upon termination of plan membership?

The CCQ does not automatically send a form to employees. Employees must contact the CCQ Customer Services to obtain an Application for benefit upon Termination of Plan Membership.

They must return the form, duly filled out and accompanied by the documents required before the deadline; the form is valid for 60 days from the date of the application. If an employee does not return the form before the deadline, he or she must apply again in order to receive a pension from the plan.. The options may then be different and the amounts calculated may be higher or lower than those indicated on the first form.

Payment terms

The benefit upon termination of plan membership is payable in a single amount equal to the value of the employee's accumulated benefits in the pension plan. This amount must be transferred into a locked-in investment that will be used to provide a retirement income, that is:

The Canadian Income Tax Act limits the maximum amount of the lump-sum benefit that can be transferred. The portion of the amount which exceeds that maximum must be paid to the employee by cheque, less applicable income taxes.

No taxes are deduced from the amount transferred to the LIRA, LIF, RPP or annuity contract.

If the value of the employee's accumulated pension benefits is less than 20% of the maximum pensionable earnings (MPE) established under the Act Respecting the Québec Pension Plan, the employee may choose to:

  • Be paid by cheque, minus tax deductions;

OR

  • Transfer the value of the pension benefit into a registered retirement savings plan (RRSP), with no taxes being deducted.

In the event of disability

Employees with a permanent physical or mental disability that reduces their life expectancy to less than two years may obtain a benefit upon termination of plan membership, under certain conditions, even if they have accumulated hours worked during the previous 24 months. This benefit must be transferred into a locked-in retirement account (LIRA), life income fund (LIF), annuity contract, or another pension plan. No taxes are deducted when the amount is transfered.

Important Note

Monthly returns are calculated between the date on the Application for Benefit upon Termination of Plan Membership form and the date of the final payment. If the returns are positive, the amount paid is higher than that on the form. Conversely, if the returns are negative, the amount paid may be lower than the amount on the form.

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.

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