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You are a member of the RREGOP, have a disability and are eligible to salary insurance benefits

Plan concerned: The RREGOP


Here are answers to questions often asked by people who have a disability.

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Impact of Disability on Your Pension Plan

I currently receive salary insurance benefits. Will this affect my pension when I retire?

No. Your pension plan credits you with the same service and the same salary it would have credited you with had you not received salary insurance benefits.

You do not have to contribute to your pension plan during the period you are eligible for salary insurance benefits, including the non-offset waiting period. The contributions that you would normally have paid are credited under your pension plan exactly as if you had paid them. Usually, you do not lose any rights during that period. This is called a waiver of contributions. Note that in order for contributions to be waived, you must be eligible to a compulsory salary insurance plan.

The same waiver applies if you receive benefits from the Société de l’assurance automobile du Québec, the Commission des normes, de l’équité, de la santé et de la sécurité du travail or Retraite Québec, while being eligible, during that period, to salary insurance under your work conditions.

What does non-offset waiting period mean?

The waiting period is the number of days between the onset of a disability recognized under your conditions of employment and the starting date of payment of your salary insurance benefits. The waiting period is generally 5 work day This link will open in a new window..

The waiting period may be offset by sick leave credits. If you do not have enough days in your sick leave bank to cover the waiting period, it is called a non-offset waiting period.

Under my conditions of employment, I must use all of my accumulated sick leave before receiving salary insurance. Do I have to contribute to my pension plan in that case?

Yes. You must continue to contribute to your pension plan while you use up your accumulated sick leave. If you have more unused sick days than needed to offset the waiting period, your contributions will be waived only after you have used up your accumulated sick leave and begin receiving salary insurance benefits.

How long does the waiver of contributions apply?

Contributions can be waived for a maximum of 3 years, even if your employer ends your employment relationship of 2 years.

However, pension plan contributions may be waived for more than 3 years for people who are entitled to salary insurance under a compulsory plan in force on December 31, 1989, which at the time, provided and still provides payment of benefits until age 65 or until retirement, provided that their employment relationship continues.

What do I have to do to get my contributions waived?

You have nothing to do. Your employer will send us the information necessary so that service and salary corresponding to your absence be recognized in your pension plan.

I’ll be returning to work soon, but on a gradual basis. Will my pension plan contributions continue to be waived?

Yes, but only for the days you receive salary insurance benefits. You will start contributing to your pension plan again for the days you are at work.

 

Disability Benefits

I suffer from a disability and can no longer work. Can I receive benefits under my pension plan?

Yes, under certain conditions. First, your disability must be a total and permanent disability within the meaning of the Income Tax Act. This means that it must prevent you from engaging in any employment for which you are reasonably suited by virtue of education, training or experience and it can reasonably be expected to last for the remainder of your lifetime.

Second, in order to be entitled to a disability benefit, you must:

  • suffer from a disability recognized by a medical committee representing our organization;
  • cease participation to your pension plan;
  • be eligible to a deferred pension from a public sector pension plan. It means being younger than 55 years old and having 2 years of service or more but less than 35;
  • not be retired.

If I satisfy those conditions, what amount of benefits will I be entitled to?

Step 1

The disability benefit to which you will be entitled is the higher of the following 2 amounts:

  • the total of your public sector pension plan contributions (without the amounts paid or transferred to acquire a pension credit), with the interest accrued up to the date of receipt of the application; or
  • the actuarial value of the deferred public sector pension plan acquired on the date of receipt of the application.

Step 2

If you have a pension credit, we will add the amounts paid or transferred to acquire a pension credit, plus accrued interest, to the amount withheld on Step 1.

We will transfer this amount to a locked-in retirement account (LIRA) or a life income fund (LIF) at the financial institution of your choice.

What is a locked-in retirement account (LIRA)?

A locked-in retirement account (LIRA) is a special registered retirement savings plan This link will open in a new window. (RRSP) into which you can transfer the funds from your pension plan.

Unlike the funds accumulated in a regular RRSP, the money in a LIRA is locked-in and can only be used for retirement income by buying life annuity or through a transfer to a life income fund. Usually, you cannot withdraw the funds from your LIRA before retiring, except if you file a medical certificate with your LIRA administrator certifying that you have a physical or mental disability that reduces your life expectancy, in which case you can withdraw all or part of your LIRA.

And what is a life income fund (LIF)?

A life income fund (LIF) is a special registered retirement income fund This link will open in a new window. (RRIF) into which you can transfer your pension funds and from which your pension benefits are paid.

Unlike a RRIF, which prescribes a minimum annual withdrawal, the LIF permits a maximum withdrawal each year.

Is it advantageous to apply for a disability benefit?

It depends on your conditions of employment regarding salary insurance. Therefore, before sending us an application for disability benefits, you should talk to the pension plan administrator at your place of work, generally in the human resources department.

What do I have to do to receive a disability benefit?

You must send the Application for Disability Benefits Under a Public-Sector Pension Plan This link will open in a new window. PDF. form (RSP-501A) to Retraite Québec, along with the Medical Report for Disability Benefits Under a Public-Sector Pension Plan This link will open in a new window. PDF. form (RSP-502A) signed by your physician and the Direct Transfer of a Single Amount Under Subsection 147(19) or Section 147.3 This link will open in a new window. form (T2151 form of the Canada Revenue Agency).

 

Useful Forms

To apply for disability benefits:

 

Useful Links

 

To Learn More About Your Public-Sector Pension Plan