Quebec retirement system

Introduction

The retirement system in Quebec in based on firstly the Canadian system. In addition to that the state has an additional system to complete the Canadian system. To start we are going to present the Canadians system and then the Quebec system.

1. Old age security

The universal system based on the solidarity and directed by the federal government and financed by the fees and taxes. This gives the pension rate for the elderly people of 65 years and more. The monthly amount of the pension is function of the number of years of stayed in Canada after the age of 18 (489, 83 CAD in 2008).
People receiving a small pension receive support from the state and different organizations. This system adjusts the pension every trimester in accordance with the inflation rate.

2. Canadian pension system

This system is in force in all the countries except in Quebec. People who have contributed to this system can receive this pension at the age of 60. This is a distributive system based on contribution. The rate in 2009 is of 9,9%

3. Private companies saving funds

Most of the private companies saving funds are accredited. Its depended of the law of each state and depends of the activity of the company. The participation to a fund of a company is or required or optional.

4. Particularity of Quebec

The Quebec fund system is characterised by the cohabitation of a two rent systems: Universal and private. Its has three based:

- Old age security law: based on the federal government, which states the number of years in the country. It’s like the Canadian Old age security system.
- Rent fund system like in the rest of the country, it’s based on the mandatory collection of taxes of the employees and the companies.
- Contribution of private pension fund: the public pension fund, complementary pension fund system and the savings pension system. The companies can suggest it and it’s optional.

5. Pension rent management