T.B. 231645 outlines amendments to the Pension Plan for federal employees who have transferred to employment under the Gouvernement du Québec. This plan operates under the framework of the Act respecting the Government and Public Employees Retirement Plan (chapter R-10). According to section 10.0.1 of the Act, federal employees transitioning to pensionable employment in Québec, under an agreement between the federal and Québec governments, may opt to join one of several specified pension plans. These include the Government and Public Employees Retirement Plan, the Pension Plan of Management Personnel (if their role qualifies), or a pension plan designed specifically for these employees and comparable to their previous federal plan.

The three pension plans for federal employees transferring to the Québec public sector differ in eligibility and benefits. The Government and Public Employees Retirement Plan (R-10) is the standard plan for most non-management employees, offering structured retirement benefits based on their contributions. The Pension Plan of Management Personnel is designed for management-level employees and offers higher benefits or different terms, reflecting the responsibilities and higher salaries of these positions. The Custom Pension Plan for Transferred Federal Employees is specifically tailored for federal employees moving to Québec, mirroring their previous federal pension plan to ensure continuity in benefits. The key distinctions are based on the employee’s role and position within the public sector.

Key stipulations from section 10.0.1 and section 125 of the Act dictate that any changes to such pension plans must receive prior approval from Retraite Québec, particularly if the changes impose additional costs. Furthermore, governmental authorization is required for amendments with financial implications. The Pension Plan for these employees was originally established in 1993 via Order in Council 430-93, and the current amendments follow the necessary consultations and approvals, including those from the Minister of Finance and Retraite Québec.

The amendments primarily address the timing and conditions for the cessation of plan governance, pension eligibility, and the payment of benefits. The revised regulations specify that employees will no longer be governed by the plan after December 31 of the year they turn 71. This change, reflected in section 13 of the plan, aligns with amendments to section 41, which ensures that pensions become payable from the contributor’s retirement date or no later than December 31 of the year the contributor reaches age 71. Similarly, section 91 now mandates that all benefits under the plan must be paid by the same deadline, even in cases where contributors have not formally applied for payment.

These changes aim to provide clarity and consistency regarding pension eligibility and benefit disbursement timelines for federal employees transitioning to Québec’s public sector. The amendments were authorized by the Conseil du trésor and will take effect on January 1, 2025, ensuring compliance with the regulatory framework established under the Act.

Quebec (TB 231645) January 2, 2025