On March 21, 2023, Eric Girard, Québec’s Minister of Finance, released the 2023-2024 Québec budget, titled A Committed Québec. This budget comes at a time of economic uncertainty, risk of recession and high inflation. It includes a number of measures related to the Québec Pension Plan (QPP), whose main objective is to encourage experienced workers to stay in the workforce longer and ensure the financial security of Quebecers in retirement.
Mercer participated in the work of the Committee on Public Finance of Québec regarding the QPP in February. We are pleased to note that the vast majority of the measures proposed in the budget documents are consistent with Mercer’s position in our brief (available in French only) and in our intervention at the Committee. Among other things, we note that:
The proposed changes to the QPP are as follows and will apply as of January 1, 2024:
We also note that the Québec government undertakes various initiatives on the QPP:
We support these changes and initiatives and are optimistic that they will be well received by Quebecers who will be offered a more inclusive and flexible QPP. However, we would like to see an automatic adjustment mechanism that provides for the contribution of workers, employers and retirees to also eventually apply to the QPP base plan.
Our consultants are available to discuss the impact of these changes on your organization and on your retirement and savings plans. Increased flexibility in the QPP will require workers to make choices. We therefore encourage organizations to communicate to employees how the QPP can be used to promote retention, better manage retirement risks, and how it can coordinate with employer-sponsored plans.
About Mercer Canada
Mercer believes in building brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. Mercer’s approximately 25,000 employees are based in 43 countries and the firm operates in 130 countries. Mercer is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, with 86,000 colleagues and annual revenue of over $20 billion. Through its market-leading businesses including Marsh, Guy Carpenter and Oliver Wyman, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment. For more information, visit www.mercer.ca. Follow Mercer on Twitter @MercerCanada.