How many employees does a business need to offer group insurance?

Several insurers accept small groups from just a few employees; conditions (evidence of insurability, available coverages) vary by insurer and group size. A comparative quote shows the real options for your business.

Is group insurance mandatory in Québec?

No, employers are not required to offer group insurance. However, an employer with at least 5 eligible employees must offer a VRSP if it does not already offer a qualifying retirement savings plan. And an employee eligible for a group plan that includes drug insurance must join it.

Who pays the premium: the employer or the employee?

The split is flexible and can vary from one coverage to another. A common practice is to have employees pay for long-term disability so that benefits are non-taxable, and to have the employer pay all or part of the other coverages.

What happens to my coverage if I leave my job?

It generally ends when employment ends. Some coverages, such as life insurance, can be converted to an individual policy without evidence of insurability if the request is made within the period set out in the contract, often 31 days.

How often should a plan be compared?

The plan is renewed every year, but a full marketing every three to five years is a common practice to make sure the premium and coverages remain competitive.

How long does it take to set up a plan?

It generally takes a few weeks between gathering information, comparing quotes, choosing the plan and enrolling employees.

Former government employees · under 55

Left the public service? Your RREGOP can work for you differently.

Before age 55, you can keep a deferred pension or transfer the value of your benefits to a locked-in retirement account (LIRA) that you control. For many people, the transfer is an excellent opportunity. Let's see together whether it is for you.

Have my RREGOP statement analyzed Why the transfer is often a good idea ↓

Your three options if you leave before 55

Less than 2 years of service

Refund of your contributions, with interest. Retraite Québec recommends ideally transferring it to an RRSP so the money stays tax-sheltered for your retirement.

Keep a deferred pension

You keep a pension payable at 65, or reduced for life as of 55. It is indexed to the cost of living between your departure and the start of payments.

Transfer the value to a LIRA or LIF

The equivalent of the value of your pension is paid into a locked-in account in your name. The request must be made to Retraite Québec before you turn 55, at least 210 days after you leave.

Why the transfer is often a good idea

You take back control

You choose your investments, for example segregated funds with death and maturity guarantees, GICs or a diversified portfolio, according to your investor profile.

Your money follows you

Not returning to the public sector? Your savings are consolidated in one place with your other investments, no longer tied to a former employer.

Growth potential over 10, 20 or 30 years

The younger you are, the longer your investment horizon. Returns are not guaranteed, but time works in favour of a well-diversified strategy.

More flexible retirement income

The LIRA can be converted into a LIF to provide income, within the minimum and maximum withdrawals allowed each year. You adapt the income to your plans.

Your family is better protected

At death, the account balance is paid to your spouse or, failing that, to your heirs, rather than depending only on the death benefits provided by the plan.

A thoughtful decision, without pressure

You do not have to decide when you leave: take the time to compare before 55, with real numbers.

Who is the transfer often worthwhile for?

You are between 25 and 54 and have left the public service, education or the health and social services network
You have accumulated at least 2 years of service under RREGOP
You do not plan to return to the public sector
You have a long investment horizon and a moderate or higher risk tolerance
You want to leave capital to your loved ones or plan your estate
You already have another pension plan or other guaranteed income

What you should also know before transferring

You give up a guaranteed lifetime pension and its indexation: you bear the investment and inflation risk, as Retraite Québec points out.
The choice is final. Once the transfer is made, you cannot return to the RREGOP pension.
Under federal tax rules, part of the value could exceed the amount that can be transferred tax-free and be taxable. Your Retraite Québec statement shows it.
If you return to work for the government, keeping your benefits lets you add up your years of service. If your new employer has a transfer agreement with Retraite Québec, that may also be an option.

How it works with me

Your statement

You ask Retraite Québec for the value of your benefits. I tell you what to request.

The analysis

I compare the deferred pension and the transfer value: return needed to match the pension, impact of indexation, protection at death.

Your profile

We establish your investor profile to choose the right investments.

The transfer

If the transfer suits you, I prepare the forms and open your LIRA with the chosen insurer, before you turn 55.

Frequently asked questions

Can I transfer my RREGOP if I still work for the government?

No. The transfer to a LIRA or LIF is available when you stop participating in the plan before being eligible for a pension and before age 55.

Until when can I make the request?

The request must be made to Retraite Québec before you turn 55, and at least 210 days after your employment ends.

Can I withdraw the money from the LIRA?

The funds are locked in: they are used to provide retirement income, generally through a LIF. Certain exceptions provided by law may apply.

Have your Retraite Québec statement? I will review it with you, at no cost and with no obligation.

Book a meeting Or start with your online needs analysis →

General information based on information published by Retraite Québec. Exact rules, amounts and eligibility depend on your file. The transfer is not suitable for everyone: each situation is analyzed individually. Jean Carrière is a financial security advisor registered with the Autorité des marchés financiers; he is not a tax specialist. Consult a tax specialist as needed for applicable taxes. Source: Retraite Québec, “RREGOP: What happens to your retirement if you change jobs?”.

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