Phased retirement: update on the transitional measures

2 avril 2016
Phased retirement: update on the transitional measures
Transitional measures for people on phased retirement
"What’s going to happen with my pension plan?"


The new collective agreement includes provisions to raise the retirement age at which participants are eligible for benefits without any penalty, in July 2019, and to raise the rate for actuarial reduction in July 2020. These changes come with the transitional measures for people on phased retirement.

Since retirement is something that has to be planned in advance, here are details of the main changes that will be made to your retirement plan.

- The age at which participants are eligible for pension benefits without any reduction will be raised from 60 to 61, for participants whose last day worked is on or after July 1, 2019. A new eligibility criterion has nonetheless been added: participants who are 60 and have at least 30 years’ service will not have their pension benefits reduced. The eligibility criterion of 35 years of service remains unchanged.

- As of January 1, 2017, it will be possible to contribute to the RREGOP for a 39th year, and after that, for a 40th year. This measure is not retroactive.

- The applicable pension reduction for early retirement will go from 4% per year (0.33% per month) to 6% per year (0.5% per month) for participants whose last day of work is on or after July 1, 2020.

Some transitional changes are for participants in a phased retirement plan. People who began to reduce their work time under a phased retirement agreement before the draft legislation to amend the RREGOP was tabled in the National Assembly won’t be affected by these amendments to the RREGOP.

Such amendments to the RREGOP will not apply either to people who started to reduce their work time under a phased retirement agreement in the 120 days following the tabling of the bill. The bill will has been tabled on May 11th 2016.

It’s essential for those who are contemplating their retirement to be aware of this period of amnesty so they can make an informed decision.

The collective agreement stipulates that a request for a retirement program must be submitted in writing to the employer at least 90 days before the program is set to begin. Once an agreement is signed, it is the start of the retirement program that exempts the person, not the signing of the agreement.

If you have any retirement-related questions, the Social Security team will be pleased to help you.
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