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Application of the New Plan

Informations sur les derniers changements 2024
Changements au régime de rentes du Québec 2024

January 1, 2024

2024 Changes to the Quebec Pension Plan

CHANGES to the disability pension

The changes, effective on January 1, apply to disabled individuals as of age 60. Additionally, since 2024 will be a transition year, everyone between the ages of 60 and 65 are also subject to these changes.

Prior to 2024, the full disability pension was paid up to age 65, then replaced by the retirement pension, with penalty. The full disability pension, up to age 65, was calculated as follows: fixed disability portion of $558.71 per month + variable disability portion (75% of the accrued retirement pension).

On January 1, the disability pension was modified between ages 60 and 65. Its variable portion was eliminated for this age bracket, indirectly forcing disabled seniors to take an early retirement pension at age 60 WITH penalty, to replace it. A blended pension was introduced for this five-year period and is calculated as follows: fixed disability portion of $558.71 per month + accrued retirement pension with penalty of up to 24%, making this retirement pension portion a false “choice".

The government tells us that disabled people have the choice of taking or refusing this retirement pension portion and that they can defer it until age 65 to avoid the penalty. But is this really a choice?

How can someone survive strictly on the fixed disability portion of $558.71 per month for five years, when they've had to stop working prematurely due to disability? (See the note below for the annual adjustment of the fixed $558.71 amount provided for by law). And even if we were to assume that it was financially feasible for the odd disabled individual not to take the retirement pension portion between the ages of 60 and 65 to avoid the penalty, could such an option be advantageous in the long term, given the fragile state of health of disabled seniors?

It is highly doubtful, since even without a penalty, they would probably never be able to recoup the loss incurred between ages 60 and 65 by not taking the retirement pension portion. The government talks about a bonus between the ages of 60 and 65 if you take the retirement pension portion. But in fact, this bonus is so minimal (less than the annual cost of living adjustment and even quite a bit less than that for many) that the government should be embarrassed. As if we would want to receive peanuts in exchange for being awarded an anticipated retirement WITH penalty—one we will have to cope with for the rest of our days…

In fact, the bonus will be about 0.5% up to a maximum of about 3.5%, while the penalty varies between 18% and 24%.

NOTE: On January 1, 2024, the fixed disability amount increased from $558.71 to $583.29 ($558.71 + annual cost of living adjustment of 4.4% = $583.29). The annual adjustment is provided for by law.

For more information: Me Sophie Mongeon, 514-596-1110, ext. 224.



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