QPP2 refers to the second additional contribution under the Québec Pension Plan enhancement. It was introduced to increase future retirement benefits for workers in Québec, similar to CPP2 in the rest of Canada.
How It Works
As of 2024, workers and employers in Québec contribute an extra percentage on income above the basic maximum (YMPE) up to a new second earnings ceiling. This is in addition to regular QPP contributions and ensures higher pensions for future retirees.
Why It Matters
- Increased benefits: QPP2 ensures future retirees receive larger pensions than under the base plan alone.
- Shared cost: Both employers and employees contribute to fund the enhancement.
- Alignment with CPP2: Keeps Québec’s system comparable to the rest of Canada’s CPP enhancements.
Final Thoughts
QPP2 strengthens the retirement income of Québec workers. While contributions are slightly higher today, they provide greater long-term financial security in retirement.