2.1 Main features of the Plan

Eligibility

Any person who receives a salary from an employer and has accumulated at least 550 paid hours, or recognized as such, in a single calendar year may become a Plan member, subject to certain conditions.

Membership

Mandatory for any employee under the age of 65 who has met the eligibility criteria.

Your contributions

6.6% since January 1, 2017.

Other contributions

Members may not make additional contributions.

Employer contributions

The employer contributes the rate recommended by the Plan actuary (which shall not be less than the member contribution rate). In addition, he or she is responsible for any required deficit amortization contributions.

Maximum contributory overtime hours

For years of credited service as of January 1, 2019, no contribution for overtime hours will be permitted if the total regular and admissible hours reaches or exceeds the 1,664 hour threshold. Contributions will only be permitted on overtime hours that bring the total hours worked to 1,664 hours, which grants a full year of service.

Interest on your contributions

The net rate of return obtained by the pension fund.

Pension

Payable for life and calculated as follows: 1.5% of average eligible earnings multiplied by your years of credited service.

A different formula will be used to calculate average eligible earnings for credited service prior to and as of January 1, 2019. Please refer to Section 5.1 for an example of calculation and to Section 12 for eligible earnings and average eligible earnings definitions.

Pension for past service

If you were eligible for recognition of your past service, you will receive the pension shown on your personalized statement.

Normal retirement

From age 65.

Early retirement

Unreduced pension: from age 60.

Reduced pension: from age 55.

Postponed retirement

When you reach age 65, you stop making Plan contributions and accumulating credited service. However, you must begin to draw your pension no later than December 1st of the year during which you reach age 71.

Pre-retirement early benefit

To be eligible for pre-retirement early benefit, you must be between 55 and 65 years of age, still be actively at work, and reach an agreement in this respect with your employer.

Payment of pension

The pension is paid in monthly instalments on the first day of each month. You may choose to receive your pension through direct deposit.

Indexation of pension after retirement

Your pension is not indexed.

Deferred pension indexation before retirement

Only the portion of the deferred pension for years of credited service prior to January 1, 2019 will be indexed until age 55, for Plan members who have ceased their active membership.

Stabilization fund

As of January 1, 2019, the creation of a stabilization fund will help to better manage risks and protect financial health of the Plan. Its funding will be divided in equal parts by employee and employer contributions. The stabilization fund contribution is included in your contributions of 6.6%.

Settlement of benefits in proportion to the degree of solvency

As of January 1, 2019, if you decide to transfer the value of your vested benefits outside the Plan following termination of participation, the transfer value, if higher than 5% of the Year’s Maximum Pensionable Earnings (YMPE), will be payable in proportion to the Plan’s solvency ratio.The solvency ratio used to calculate the transfer value will be the ratio determined in the most recent actuarial valuation or, if more recent, the latest notice regarding the Plan’s financial situation submitted to Retraite Québec.