The Québec Pension Plan (QPP) is a public insurance plan that provides retirement, disability, and survivor benefits to workers in Québec. It is similar to the Canada Pension Plan (CPP) but managed separately by the Québec government.
How It Works
Employees and employers in Québec contribute a percentage of employment income to the QPP, up to an annual maximum based on the Year’s Maximum Pensionable Earnings (YMPE). Self-employed workers pay both the employee and employer portions. Benefits in retirement depend on how much and how long you have contributed.
Benefits Provided
- Retirement pension: Monthly payments that replace part of your income when you retire.
- Disability pension: Support if you are unable to work due to a disability.
- Survivor benefits: Payments to your spouse or children if you pass away.
Final Thoughts
The QPP is an essential part of retirement planning for Québec residents. While it operates separately from CPP, both systems provide similar protections for workers and their families.