Adoption of regulations for the implementation of dynamic pensions in Quebec

On December 17, 2025, the Quebec government adopted the Regulation to amend the Regulation respecting supplemental pension plans and the Regulation to amend the Regulation respecting voluntary retirement savings plans. The purpose of these regulations is to allow defined contribution plans and voluntary retirement savings plans (VRSPs) to implement dynamic pension funds, also known as variable payment life annuities (VPLAs).

The draft versions of these regulations, published on May 28, 2025 (see our bulletin for more details), were adopted with very few amendments and will come into effect on January 1, 2026.

As a reminder, defined contribution plans and VRSPs will be able to offer a dynamic pension fund with the following main terms:

• Members may decide to transfer all or part of their savings from these plans into the fund. The amount transferred will immediately be converted into lifetime income in accordance with the interest rate (called the “reference rate”) and the mortality assumption applicable to that fund.
• The pension will be adjusted annually according to the fund’s return, which is calculated using the audited financial report. The pension will also be adjusted at least every three years to factor in the mortality experience of the fund’s beneficiaries, or in the event of a change to the mortality assumption.
• The dynamic pension fund must be the subject of an actuarial valuation at least every three years and must have at least ten beneficiaries receiving a lifetime pension.

Retraite Québec has added a page about dynamic pension funds to its website and will be giving a webinar on the topic in March 2026.

By adopting these regulations, Quebec is officially becoming the first province to establish a regulatory framework that permits the implementation of dynamic pension funds. These funds could become available as early as 2026, providing many Quebecers with an innovative option for converting savings into income.

Normandin Beaudry’s pension and savings experts can provide you with a comprehensive analysis of the opportunities dynamic pensions can provide for your organization. Would you like more information? Contact your Normandin Beaudry consultant or email us.