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Increase in QPP/CPP contributions: Are you in the loop?
The increase in contributions to the Quebec Pension Plan (QPP) and the Canada Pension Plan (CPP) will begin in early 2019.
In October 2018, Normandin Beaudry surveyed rémun member organizations to learn more about what they intend to do following the changes to the QPP/CPP. Some 40 organizations, representing a total of about 90,000 employees, took part in the survey. Here are some highlights:
- More than one in five compensation specialists (21%) have yet to acquaint themselves with the imminent changes, such as the progressive enhancement of benefits or gradual increase in employee and employer contributions. All evidence suggests that the employees and managers of these organizations are even less aware of these upcoming changes.
- Nearly half of surveyed companies (44%) said they were concerned about the impact the QPP/CPP contribution increase would have on employees’ disposable income.
- In response to their increased contributions, the intentions of organizations vary:
- 56% say they haven’t given the issue much thought
- 23% plan on absorbing the increase
- 15% wish to adjust the contributions/benefits of their pension plan
- 6% hope to make up this increase by adjusting another type of expense
To learn more about the enhancement of public plans, read the bulletin we issued last year.
To assess the impact of this increase on your total rewards offer, evaluate how your plans fit in with this change or to design a communication plan to highlight your organization’s position, our experts can help.
Contact your Normandin Beaudry consultant or email us.