Reduction in Québec Pension Plan Contributions for Workers 65 or Older
In the Budget Speech of March 21, 2023, the Minister of Finance announced that changes would be made to the Act respecting the Québec Pension Plan so that workers 65 or older can stop contributing to the Québec Pension Plan (QPP) and workers over 72 are no longer required to contribute to the plan.
Introduction of an option to stop paying QPP contributions for workers 65 or older
As of January 1, 2024, workers 65 or older can choose to stop contributing to the QPP, provided they receive a QPP or Canada Pension Plan (CPP) retirement pension. This measure will promote job retention and offer greater financial flexibility. However, for workers who make this election, the retirement pension supplement, an additional amount their QPP contributions entitle them to, will no longer be added to their QPP retirement pension.
For employees, the election to stop making QPP contributions must be made using the Election to Stop Contributing to the Québec Pension Plan, or Revocation of an Election (form RR-50-V), which must be given to the employer and to Revenu Québec. Note that the election will also apply to the employer.
For self-employed workers or workers responsible for a family-type resource or an intermediate resource, the election to stop making QPP contributions must be made when they file their income tax return for the year.
Note that the election cannot come into effect before January 1, 2024.
End of the obligation to contribute to the QPP for workers over 72
As of 2024, the obligation to contribute to the QPP will cease for workers over 72, for all workers subject to the contribution provided for by the Act respecting the Québec Pension Plan.
Specifically, the obligation to contribute to the QPP for workers will cease as of the year they turn 73. Consequently, all wages paid and earnings received as of January 1 of the year a worker turns 73 will no longer be subject to QPP contributions.
For more information, see the Budget 2023-2024 – Additional information document on the Minister of Finance website.