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You are a member of the RREGOP or the PPMP, have a disability but are not eligible to salary insurance benefits

Plans concerned: The RREGOP and the PPMP


Here are answers to frequent questions about the benefits payable for disability.

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Impact of Disability on Your Pension Plan

I suffer from a disability, but I am not eligible to a salary insurance plan. Will my absence have an impact on the retirement pension I will receive later?

A disability period during which you are not eligible to a salary insurance plan is usually subject to the same provisions as any other absence without pay. This means that the period is contributory or redeemable according to its length. Thus, this absence could have an impact on the retirement pension you will receive later.

To find out more about the impact of your disability on your retirement pension, click on the following links:

 

 

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 public sector pension plan deferred pension. 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 to receive 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 public sector pension plan deferred pension 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. Therefore, 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