The Régime de rentes du Québec (RRQ) is set to implement several modifications for its 2026 edition, reflecting more modest changes following a series of significant reforms in previous years. Here’s what you need to know about the upcoming adjustments.
Key Changes to the RRQ in 2026
1. Increase in Benefits
Starting January 2026, approximately 2.2 million RRQ beneficiaries will see a 2% increase in their pensions. This adjustment is aligned with inflationary pressures experienced nationwide in Canada. In contrast, last year’s increase was 2.26%, while in 2024, it peaked at 4.4%.
As of late October, the year-over-year inflation rate in Quebec was around 3.2%, indicating potential adjustments for future pension calculations. The inflation adjustment is determined by the average variation in the Consumer Price Index from November of the previous year to October of the current year. This method ensures a comprehensive annual assessment rather than focusing solely on short-term monthly fluctuations.
2. Contribution Rate Adjustments
In a recent update, Quebec’s Minister of Finance, Eric Girard, announced a reduction in the basic contribution rate to the RRQ. The rate will decrease from 10.8% to 10.6%, equating to a change from 5.4% to 5.3% for employees. This adjustment is expected to yield maximum savings of $137 for employees and $259 for self-employed workers.
The average gain per individual is estimated at $182, which could cover significant expenses such as groceries for a single person. For salary earners, the total maximum contribution, including the supplementary plan, is projected to be $4,895.30 annually, based on a maximum income of $85,000.
3. Changes for Disabled Workers
The RRQ will also exclude certain benefits from its pension calculations for workers injured on the job. This adjustment follows previous legislation aimed at improving conditions for those receiving disability pensions. Notably, starting January 1, 2025, seniors aged 65 and older who have received disability payments will be entitled to 100% of their retirement pension if indeed they meet the criteria.
Additionally, from January 1, 2026, months during which a worker received income replacement benefits from the Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST) will not be counted when calculating retirement benefits—provided the payment duration exceeds 24 months.
Status of the RRQ
The updated changes must be viewed in context, particularly regarding the financial health of the RRQ. The actuary evaluation, conducted every three years, is vital for projecting the financial status of both the basic and supplementary plans over the next 50 years. The latest report confirms the RRQ’s robust financial standing, indicating that revenues are sufficient to meet annual disbursement needs throughout this projection period.
As of December 31, 2024, the base plan’s reserve is projected to be $126 billion and may exceed $1,300 billion in 50 years. The supplementary plan is anticipated to rise from $16 billion to over $1,260 billion within the same timeframe.
Risks and Future Considerations
The RRQ acknowledges potential risks, primarily connected to investment revenues and future contributions. Key factors requiring long-term monitoring include demographic changes, shifts in the job market, climate change impacts, and broader economic and geopolitical instability.
Overall, as RRQ prepares for 2026, these updates aim to balance the need for sustainable pension provisions with the economic realities faced by both workers and retirees in Quebec.
