As of January 1, 2019, the QPP will be enhanced and will consist of two plans.
Base plan:
Currently, for annual salaries over $3,500, employees and employers each contribute 5.4% of the employee's annual income.
Additional plan:
Also an additional plan will see further contributions paid by employees and employers that will gradually increase through to 2023.
Therefore, the enhanced QPP will consist of the base plan and additional plan.
The expansion of the QPP (similar to the concurrent enhancement of the Canadian Pension Plan) is designed to increase income replacement in retirement from one-quarter to one-third of pensionable earnings.
Please note that employees and employers pay half of the contributions to the QPP, while self-employed workers pay the entire contribution.
For more information, please visit https://www.rrq.gouv.qc.ca/en/programmes/regime_rentes/bonification/Pages/bonification-du-rrq.aspx.
We recently communicated the 2019 contribution limits and CPP enhancements in this GRS Matters article.
Questions?
Contact your Sun Life Group Retirement Services representative
