(Dec. 3/17): On November 2, Quebec’s finance minister announced modifications to the Quebec Pension Plan (QPP) with the tabling of Bill 149. The announcement is aligned with federal changes to the CPP and its goal is to boost employers’ and employees’ contributions so pensions will be increased. It will be phased-in until 2025.
By the end of the phased-in period, contributions will increase from 10.8% to 12.8%, split between employers and employees at the same ratio as they are now. The increase is lower for those earning less, a stipulation which Restaurants Canada lobbied hard to include. An additional 8% contribution will be asked for people earning more than $55,000 annually.
The new rates will be applied beginning January 1, 2019, with a 0.3% increase during the first year and gradually increasing until 2025.
Only Quebec business associations and unions will be heard during the parliamentary commission.
We will produce a quick brief for the commission that will include our main recommendations.
During Quebec’s fiscal update on November 21, the government announced its intent to offset all new employee subscriptions with an equivalent tax credit. Moreover, all new employer contributions would become fully tax deductible.
Restaurants Canada issued a press release regarding the fiscal update, where we emphasized the importance that any proposal to increase QPP contributions be tax-neutral for employers and employees.