Additional indexation of RREGOP pension benefits | government responds favourably to unions’ and pensioners’ request
June 27 2024
Québec City - Representatives of unions and pensioners welcome the decision of the government to index the part of the RREGOP benefits for which it is responsible for years of service accumulated between 1982 and 1999. This indexing of 0.4% is additional to the equivalent, previously confirmed indexing, which is borne by participants.
In 2010, the negotiating parties agreed to amend the Act Respecting the Government and Public Employees Retirement Plan (RREGOP) to grant additional indexing in addition to the regular indexing for years of service accumulated between 1982 and 1999, if the RREGOP’s capitalization rate were to exceed 120%. This rate was exceeded for the first time in 2023, which means that additional indexing will be automatically granted in the coming weeks for the part of the benefits borne by participants.
The government did not have the same obligation for the portion of benefits it is responsible for, and it had until July 1, 2024, to decide whether it would grant the indexing. It has just confirmed that it will do so, responding favourably to the request of unions and pensioners’ associations.
RREGOP benefits for the years 1982-1999 will increase this year by 2.2% thanks to the combination of regular and additional indexing.
“The government is complying with the spirit and letter of the agreement it signed in 2010 by increasing the amount of pension benefits when the financial health of the plan allows,” said the representatives of unions and pensioners. “It is sending a positive signal – and what matters most is that this is good news and a source of comfort for tens of thousands of public sector pensioners. Their purchasing power will be better protected, at least this year, as they face a major increase in the cost of living.”
Because of a “trailer clause” in the Act Respecting the Government and Public Employees Retirement Plan, at the request of pensioners and union members, the additional indexing will also be granted to pensioners of other plans, such as the Teachers’ Pension Plan (RRE), the Public Sector Service Superannuation Plan (RRF) and the Pension Plan of Certain Teachers (RRCE). These women and men who worked in the public service and helped build Québec will also have their purchasing power better protected.
Sources :
APTS
AREQ-CSQ
CSN
CSQ
FAE
FIQ
FTQ
RIIRS
SFPQ
