Phased retirement

You are eligible if:

• You are 50 years old or over;
• You have contributed to the Québec Pension Plan for at least a year;
• You are a salaried employee;
• You have reached an agreement with your employer * to reduce your regular work time by at least 20% until retirement.

* If you have more than one employer, the total reduced work time must be at least 20%.

You can submit a redemption request as soon as you begin the phased retirement.

You can submit another redemption request one year after the first disbursement. At that point, you will once again have to show that you are still in phased retirement. You will be eligible to redeem the same amount as the first time (see point 3 below).

The Fonds de solidarité FTQ can redeem all shares held for at least 730 days and acquired before the beginning of the phased retirement.

The amount of the eligible redemption is determined when the first request is submitted, up to:

• An amount equal to the lost earnings for the year;

or, if the amount is lower,

• The balance in the account divided by the number of years remaining to full retirement.

Example:
By taking a phased retirement, you will lose $20,000 in earnings. You have $40,000 of eligible shares in your account and are four years away from retirement. The eligible redemption is calculated as follows:

$40,000 = $10,000
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The eligible redemption is therefore $10,000 since this amount is less than the earnings lost as a result of the phased retirement.

The share price is usually published around January 5 and July 5. After these dates, shares are redeemed at the current price.

However, there are “transitional” periods, between the end of each six-month period and the date the share price is published:

• between November 30 and January 5;

and

 • between May 31 and July 5.

Contact Shareholder Services to find out the options if you submit your request during one of these transitional periods or if you are retiring during one of these periods or during the three months following the end of one of these periods. You can also consult the simplified prospectus.

However, no tax is withheld if you transfer your Fonds RRSP to another plan such as another RRSP, an annuity or a Registered Retirement Income Fund (RRIF).

If you provide all the required documents, your request will be processed within 30 days from the time the Fonds receives your request.

While you can purchase Fonds shares again after a redemption for retirement, you will not be entitled to any tax credit.