The Quebec Pension Plan is a CCP style pension program for the province of Quebec. This post covers the QPP benefit program for Quebec retirees.
Weโll start off with the QPP payment dates for 2023, its eligibility, how to apply, how much you can receive and how the amount is calculated.
QPP Payment Dates 2023
The payments for the retirement pension, disability or death benefits are combined and paid on the same dates, usually the last business day of each month.
So the Quebec Pension Plan, QPP payment dates for 2023 are:
Benefit Month | QPP Payment Dates |
January | January 31, 2023 |
February | February 28, 2023 |
March | March 31, 2023 |
April | April 28, 2023 |
May | May 31, 2023 |
June | June 29, 2023 |
July | July 31, 2023 |
August | August 31, 2023 |
September | September 29, 2023 |
October | October 31, 2023 |
November | November 30, 2023 |
December | December 28, 2023 |
Like all other benefit payments, you may choose to receive the QPP payments as cheque or as direct deposit in your bank account.
Direct deposit is fast and secure, and ensures youโll receive your retirement pension on the QPP payment dates above.
What is the Quebec Pension Plan?
The Quebec Pension Plan was started in 1966 with the aim of providing pension to those in retirement in the province. It is the equivalent of the federal pension program, Canada Pension Plan (CPP).
QPP payments can start as early as age 60, but those that wait till the normal retirement age of 65 will receive a higher amount. Also, the payments are guaranteed for life and inflation protected.
The available benefits under the Quebec Pension Plan include:
- Retirement Pension
- Disability benefits
- Survivorsโ benefits
- Death Benefit
How Much QPP Can You Get?
Your monthly QPP payments is based on how much you have contributed to the plan and your age when you apply for it.
The earliest age to start receiving the QPP retirement pension is 60. But the longer you wait to apply, the higher the amount youโll get.
For example, a retiree that applies at age 60 will only receive 64% of the maximum pension amount for someone aged 65.
On the other hand, if the retiree waits till 70 before they start receiving QPP, they can receive 142% of the maximum amount.
For 2023 payment period, the QPP maximum monthly amounts for retirement pension are shown in the table below:
Age at Application | % of Max Pension | QPP Maximum Monthly Amounts |
---|---|---|
Age 65 | 100% | $1306.57 |
Age 60 | 64% | $836.20 |
Age 70 | 142% | $1855.33 |
To estimate how much you can receive, you can use the CompuPension tool here to simulate your retirement income. Another useful tool from the Quebec government is SimulR.
The Statement of Participation in the Quebec Pension Plan will also show you how much you have contributed to the plan and what you can expect to receive.
Here are a few things to note about your retirement pension:
- You can apply and start receiving your retirement pension the month after you turn 60. However, waiting till age 65 or after will increase your pension amount
- If you apply at age 65, you can expect the pension payment to replace 25-33% of your average monthly earnings for your contribution period. Months with low or nil income can be excluded from the average, meaning youโll get a higher amount.
- If youโve contributed to the plan and youโre over age 60, you can start receiving your pension even if youโre still working full-time or part-time
Is QPP Taxable?
The retirement pension amount is taxable. Your tax liability depends on your total income for the year that is made up of your retirement pension and income from all other sources.
However, you can reduce the tax payable on your QPP amount by sharing your pension with your spouse. Both spouses must be above age 60 for them to share the pension.
And if theyโve both contributed to QPP, then both of them must have started receiving their pension for the strategy to work.
QPP income sharing with a spouse is not automatic. You must apply to Retraite Quรฉbec to take advantage of the option. Check here for more information.
Additional QPP Benefits
There are a few other benefits available under the Quebec Pension plan in addition to the retirement income. These include:
Disability benefit
Persons below age 65 with a disability that have made sufficient contributions to the Quebec pension plan can receive disability benefits under QPP.
The benefit includes a disability pension for the QPP contributor, pension for their child and additional amount for disability.
Disability pension pays a maximum monthly benefit of $1537.13 and $89.45 for the disabled personโs child.
Finally, the additional amount for disability for retirement pension beneficiaries is capped at $496.36 per month in 2023.
Survivorsโ benefit
The survivorsโ benefit provides financial assistance to the family of a deceased QPP beneficiaries if they โcontributed sufficiently to the Quebec Pension Planโ.
It includes a surviving spouseโs pension and an orphanโs pension.
The surviving spouseโ pension pays a monthly benefit of $649.20 to a beneficiary aged 45 and below with no dependent children and up to $1064.81 a month to beneficiaries aged 45 to 64.
Orphanโs pension on the other hand is a maximum monthly benefit of $264.53 that is paid until the child turns 18.
Death Benefit
This is a lump sum payment of a maximum $2,500 to the heirs of a QPP recipient or to someone or charity that paid the funeral expenses at their death.
The person that paid the funeral expenses is given the priority in determining who gets the benefit. If the actual funeral expenses are not up to $2,500, the difference can be paid to the heirs.
Note that the death benefit is taxable and must be included in the income of the estate.
Quebec Disability Pension Payment Dates
The disability pension benefits are paid on the same day as QPP retirement income, usually the last business day of each month. For 2023, the Quebec disability pension payment dates are:
Benefit Month | Quebec Disability Pension Payment Dates |
January | January 31, 2023 |
February | February 28, 2023 |
March | March 31, 2023 |
April | April 28, 2023 |
May | May 31, 2023 |
June | June 29, 2023 |
July | July 31, 2023 |
August | August 31, 2023 |
September | September 29, 2023 |
October | October 31, 2023 |
November | November 30, 2023 |
December | December 28, 2023 |
Like the retirement pension payments, you can enroll for direct deposit to have the benefits received in your bank account on the Quebec disability payment dates.
QPP Increase 2022
QPP benefit amounts are indexed to inflation so recipients will always see an increase each year. For 2022, the retirement income for someone aged 65 increased by $45.33 from $1,208.26 in 2021 to $1,253.59.
Disability benefits also increased from $1,416.45 to $1,463.83 โ an increase of $47.38. The survivorsโ benefit increased too but the lump-sum death benefit of $2,500 remain unchanged.
The table below shows a summary of the QPP increases in 2022:
Benefit | 2021 Amount | 2022 Amount |
---|---|---|
Max. Retirement Income | $1,208.26 | $1,253.59 |
Max. Disability Income | $1,416.45 | $1,463.83 |
Surviving spouseโs pension (age 45 โ 64) | $958.40 | $995.92 |
Orphanโs pension | $257.58 | $264.53 |
Besides the regular annual increase, thereโs no any official announcement on QPP increase for 2023 yet.
QPP Contributions
To be eligible to receive retirement income under QPP at retirement, recipients would have to make contributions to the plan over the course of their careers.
Those earning less than $3,500 are exempted from contributing to the Quebec pension plan. The base contribution rate is 10.8% of earnings up to the Maximum Pensionable Earnings of $66,600 for the 2023 contribution year.
That means the maximum that can be contributed under the base plan is $6814.80. Employees can only contribute half of this amount, while their employer contributes the other half. On the other hand, Self-employed workers will have to contribute the full amount themselves.
Thereโs an additional plan that allows a maximum contribution rate of 1% to 2% for those interested in contributing extra to QPP.
When Does QPP Payment End?
QPP is a guaranteed retirement income source for beneficiaries. It is paid for life and does not end until after the death of the retiree.
So what happens to QPP at death?
At death, the retireeโs survivors get a lump sum, one-time death benefit of $2,500. Also, the surviving spouse and the deceasedโs children may qualify for the monthly Surviving spouseโ pension and Orphanโs pension.
For 2023, these benefits pay a maximum of $1064.81 and $281,72 respectively.
Some FAQs: Quebec Pension Plan
At what age can you apply for QPP?
Application for QPP retirement income can start at age 60. But the longer you wait to apply, the higher the amount youโll get. For example, a retiree that applies at the age of 60 will only receive 64% of the maximum pension amount for someone aged 65.
How much can you receive as disability in Quebec?
You can receive up to a maximum of $1537.13 monthly as a disability benefit under QPP. If you meet the eligibility criteria, you can also get $558.71 as an additional amount, and $83.99 for each child.
Will QPP benefits increase in 2023?
QPP is indexed to inflation so thereโs always an annual increase. For 2022, the QPP retirement income for a recipient aged 65 increased by $30.96 from $1,208.26 in 2021 to $1,253.59. All the other benefits also had slight increases.
What date is Quebec pension paid?
The Quebec pension benefits are paid on the last business day of each month. In 2023, the QPP payment dates all fall on the last working date of the months except for December with a payment date of December 28 โ a day before the last business date.
Related: Quebec Family Allowance Dates
Hi Im sending this from Greece as of today i have not received August payment in direct bank deposit can you please check if there is any problem?
thank you