The future of Quebec’s retirement system

Expert Committee on the Future of the Quebec Retirement System issues report
By Natalie Bussière
|Canadian Payroll Reporter|Last Updated: 07/08/2013

The Expert Committee on the Future of the Quebec Retirement System, known as the D’Amours Committee, issued its report on April 17. The committee’s initial mandate was to study the plans overseen by the Régie des rentes du Québec (the Régie) and sponsored by public-sector employers (mainly university and municipal pension plans). However, the committee’s mandate was broadened to cover the other components of the Quebec retirement system, including the retirement plans which provide defined benefits (DB) and are offered by private-sector employers.

A new ‘enhanced funding’ method

The committee recommends all pension plans overseen by the Régie be subject to a single valuation method to be used to determine the funding requirements for both past and future service. The committee recommends the application of a so-called “enhanced funding” method in order to assess pension plan funding. According to the committee, this method would paint a better picture of the financial condition of a pension plan than the funding test currently used.