If my income decreases, can I draw on my RRSP+?

Yes, if you suffer a reduction in your income for at least two consecutive months as a result of certain special circumstances.

You can draw on your RRSP+ in the following cases:

  • a loss of employment or the end of a single contract;
  • an involuntary reduction of your usual hours of work;
  • a decrease or termination of income replacement benefits.

Requirements:

The shareholder or their spouse must show that they have been affected by one of the following events which causes a decrease in income for a minimum period of two consecutive months, namely:

  • loss of employment or loss of the sole contract on which the shareholder or their spouse worked for a minimum of 28 hours per week, and this, for at least two months;
  • the involuntary reduction in regular work hours at a job at which the shareholder or their spouse worked for at least two months;
  • the involuntary decrease or termination of income replacement benefits that the shareholder or their spouse had been receiving for at least two months
AND

must show that the net income has decreased by 20% or more for a minimum period of two consecutive months

AND

must have liquidated all redeemable investments (including any other RRSP), the purchase of the shares

being the last resort

AND

For subsequent request, the shareholder must show that the event invoked still exists and that their net income has decreased by 20% or more for a new minimum period of two consecutive months.

Documents required:

The Fonds de solidarité FTQ form

AND

For the loss of employment or end of the sole contract:

  • employment record confirming the end of the last employment
  • letter from the employer confirming the end of the last employment or the end of the sole contract
  • letter from the employer confirming the involuntary decrease of the hourly rate
  • proof of the involuntary closure of the business of the shareholder or that of their spouse if such spouse was an employee thereof
  • proof of regular employment insurance, employment assistance or income security benefits for at least two months;
  • proof of ineligibility to regular employment insurance benefits

For the involuntary reduction in regular work hours

  • letter from the employer confirming the involuntary reduction in regular work hours
  • letter from the employer confirming the unpaid suspension
  • proof of the loss of employment at which the shareholder or their spouse worked less than 28 hours per week
  • proof of multiple lay-offs in the last two months

For the involuntary decrease or termination of income replacement benefits:

  • proof of the involuntary decrease or termination of income replacement benefits (CNESST, SAAQ, employment insurance, disability insurance, income security, employment assistance, etc.)
AND

proof of all net income or net benefits prior to the decrease in income for a full month

AND

recent proof of all net income or net benefits for the period of decrease in income for two full consecutive months

OR

recent proof of absence of income for two full consecutive months, as applicable

AND

proof that all redeemable investments have been liquidated or cannot be redeemed.

AND

If the decrease in income involves the shareholder’s spouse proof of all net family income or net family benefits for a full month prior to the decrease in income

AND

recent proof of all net family income or net family benefits for the period of decrease in income for two full consecutive months

OR

recent proof of absence of family income for two full consecutive months, as applicable

AND

proof that all redeemable family investments have been liquidated or cannot be redeemed.

Eligible shares:

All shares held. Shares purchased after the decrease in net income cannot be redeemed under this criterion.

Subsequent share acquisition:

One year after purchase by the Fonds de solidarité FTQ.

Disbursement terms and conditions:

Maximum payments not exceeding a net value of $5,000 each, at a minimum two‑month interval between each payment

OR

upon the initial request under the event invoked

Do you have a more questions?

Our agents will be pleased to answer any questions you may have at:

1 800 567-3663
Legal Notes

Please read the prospectus before buying Fonds de solidarité FTQ shares. Copies of the prospectus may be obtained on the fondsftq.com website, from a local representative or at the offices of the Fonds de solidarité FTQ. The shares of the Fonds de solidarité FTQ are not guaranteed, their value changes and past performance may not be repeated.
Prospectus En ( 883 Kb )