Quebec Pension Plan (QPP)
QPP provides basic financial protection to those workers who are retired or disabled and to the families of deceased workers. Quebec Pension Plan (QPP) is equivalent of the Canada Pension Plan (CPP). Every worker whose age is 18 or older must pay QPP contributions. This means that even to employees with the following also have to pay QPP contributions:
- Recipients of a Quebec / Canada Pension Plan retirement pension
- Who are 70 years of age or older
QPP Contribution
QPP contributions are same by the employer and the employee. Employer and the employee must pay the contributions to the QPP until the pensionable salary or wages paid to the employee for the calendar year reach the maximum pensionable salary or wages for the year which is $48300 for the year 2011
Quebec Pension Plan Rates
The table below lists the maximum annual pensionable earning, exempted amount, and employee contribution rates for Quebec Pension Plan benefits for 2011-2008.
|
QPP benefits |
2011 |
2012 |
2013 |
|
Maximum Annual pensionable
earnings |
48300 |
50100 |
51100 |
|
Basic Exemption |
3500 |
3500 |
3500 |
|
Contribution rate |
9.9% |
10.05% |
10.20% |
|
Maximum Contributory Earnings |
44800 |
46600 |
47600 |
|
Employee Contribution Rate |
4.95% |
5.025 |
5.1 |
|
Max. Annual Employee Contribution |
2217.60 |
2341.65 |
2427.60 |
Quebec Pension Plan (QPP) - Retirement Pension
Those who contributed to Quebec Pension Plan and retired QPP provides them retirement pension. A person can receive QPP retirement pension as soon as age of 60 if that person has contributed to the plan.
Quebec Pension Plan (QPP) - Survivor benefits
Quebec Pension Plan survivor benefits are given to those family members of deceased persons who are surviving spouse or common law partners or dependent children. These are three types of benefits which are followings:
- Death benefits - One time payment on the behalf of deceased contributor of QPP.
- Orphan pension - Monthly payment to the children of deceased contributor of QPP.
- Survivor pension - Monthly payment to surviving spouse or common law partner of deceased contributor of QPP.
Quebec Pension Plan (QPP) - Disability benefits
The Quebec Pension Plan disability benefits are every month payments. These are obtainable to individuals who contributed to the QPP while they worked and are under age 65 & then became unable to work at any job on a regular basis because of a disability. There are following two types of Disability benefits
- Those persons which are deemed to be disabled are given disability benefits.
- And if that person has dependent children under age 18.