PROPOSED CHANGES TO THE GOVERNMENT AND PUBLIC EMPLOYEES RETIREMENT PLAN (RREGOP)

RREGOP: Actuarial penalties and the age of retirement

The reduction applying to an early retirement

• As of July 1, 2020, the reduction applying to an early retirement will increase from 4.0% per year (0.33% per month) to 6.0% per year (0.5% per month).

Eligibility to receive pension benefits without any reduction

• As of July 1, 2019, the age for being eligible to receive pension benefits without any reduction will increase from 60 years old to 61 years old.

• As of July 1, 2019, a new eligibility criterion for receiving pension benefits without any reduction will be added:

“The age and years of service must add up to 90, if the participant is at least
60 years old.”

• People who have accumulated 35 years of service will still be able to retire without incurring any reduction to their benefits.

RREGOP: Transitory provisions

• These modifications will not apply to people who prior to December 16, 2014 began to reduce the number of hours they worked by virtue of a progressive retirement agreement.

• These modifications will apply to people who after December 15, 2014 began to reduce the number of hours they worked by virtue of a progressive retirement agreement. However, the people who will have started to reduce the number of hours they worked prior to the date that this agreement is signed will be
able to exercise the choice of extending their progressive retirement agreement until they reach one of the new criteria for retiring without any reduction. During this extension, the existing provisions regarding the circumstances under which an agreement becomes void or terminates shall apply.

RREGOP: years of service to be credited

• As of January 1, 2017, contributions shall be paid on service performed over 38 credited years of service up to a maximum of 40 credited years of service.

• Any employee who so wishes may thus continue working until a 40th year and thereby receive 80% of their salary during their retirement.

RREGOP : creation of a committee

The parties agree to set up a working committee whose mandate will be to examine the provisions and financing of the RREGOP, taking certain issues and challenges into account, notably:

Management demands withdrawn

• Using one’s 8 best years instead of one’s 5 best years for calculating one’s pension benefit: WITHDRAWN

• Automatic increase in the age of the retirement tied to the evolution of life expectancies: WITHDRAWN

• Discussions on the conditional indexation of benefits: WITHDRAWN

• Obligation to be at least 55 years old in order to begin a progressive retirement: WITHDRAWN

• Increase in the cost of buybacks or mandatory contributions related to most unpaid leaves, including progressive retirement (from 100% to 200%): WITHDRAWN

For the complete PP presentation of the agreement-in-principle click HERE

In PDF format click HERE