Impact of QPP changes on Manulife disability payments

December 4, 2023

For business owners, plan sponsors and administrators

Starting on January 1, 2024, the Quebec Pension Plan (QPP) is changing how QPP disability recipients get their payments, as part of the Government of Quebec’s implementation of Bill 17. 

Below, we outline how Manulife group disability benefits are impacted by these changes.

Impacted members are those who:

  • Have a disability claim effective on or after January 1, 2024,
  • Are between ages 60 and 64,
  • Have contributed to QPP. 

This notice is for informational purposes only. Plan sponsors don’t need to take any action. 

What’s changing for disability recipients between 60 and 64 who’ve contributed to QPP:

QPP disability pension payments

Currently (before QPP changes) After the January 1 changes

Disability pension recipients receive 1 disability pension payment from QPP. 

That 1 payment is comprised of a fixed rate and a variable rate. The variable rate is based on their QPP contributions.

The QPP payment will be split into 2 payments:
  1. A QPP disability pension payment for the fixed rate
  2. A QPP retirement pension payment for the variable rate

Recipients between the ages of 60 and 64 have the option of opting out of the QPP retirement pension payment, deferring their QPP retirement payments to later in life. 

Manulife disability benefit payments

Currently (before QPP changes) After the January 1 changes
Manulife reduces our disability benefit payment to a member by the amount of that 1 payment from QPP.  As of January 1, Manulife will continue to reduce our payments by the full amount members are entitled to receive from QPP, including both the disability and retirement pension payments. This holds true even if the member opts to defer their QPP retirement pension payments. 

Members on Manulife disability benefits prior to January 1

For members on disability prior to January 1, Manulife’s payments will not change. We will continue to reduce our payments by the same amount as prior to January 1. We won’t change our payment if these members decide to opt out of their QPP retirement pension payments.

Manulife will continue to make improvements to our contracts to ensure we are clear to our plan sponsors and members about what to expect. We are committed to keeping short- and long-term disability coverage affordable and sustainable.

If you have any questions or concerns, please reach out to your Manulife Representative.

Find more information about the upcoming QPP changes on the QPP website.