The current death benefit that the Régie des rentes du Québec (RRQ) pays as compensation to pay the funeral expenses of a deceased person who contributed to the RRQ amounts to $2,500, a ridiculously low amount which dates back to 1998.
None of the nine finance ministers over the past 26 years has seen fit to increase the death benefit, even at the rate of inflation. And so far, there is nothing to suggest that the current financier of François Legault’s government, Minister Eric Girard, will correct this aberrant situation.
To show you to what extent this amount of $2,500 of the QPP death benefit to cover the funeral expenses of a deceased person is completely disconnected from reality, I refer to the two other death benefits that public government agencies of Quebec pay.
If a person dies following a work accident covered by the CNESST (Commission for Standards, Equity, Health and Safety at Work), the CNESST pays the estate the sum of $6,318 for cover the funeral costs of the deceased.
In the case of death following an automobile accident, the Société de l’assurance automobile du Québec (SAAQ) grants the estate compensation for funeral expenses of $8,339.
- Listen to the economy segment with Michel Girard via QUB :
WHERE IS THE LOGIC?
How can we explain such a gigantic gap between the death benefit paid by the RRQ, that of the CNESST (which is 2.5 times higher) and that of SAAQ (3.3 times higher)? However, here we compare the death benefits offered by three organizations under the same Quebec government.
Where is the logic of the Quebec government to freeze the QPP death benefit at only $2,500 for the last 26 years?
In the memorandum that it submitted to Minister Eric Girard as part of the budgetary consultations which are currently underway, FADOQ reminds him that, according to the Corporation of thanatologists of Quebec, the average costs for funeral products and services have increased from $4907 in 1997 to around $7557 in 2022.
This means that the current QPP death benefit barely covers a third of the average cost of funeral expenses. Worse still: the $2,500 benefit is also taxable.
REQUEST FROM FADOQ
Representing some 550,000 seniors, FADOQ is asking Minister Eric Girard to increase the amount of the said QPP death benefit to at least $5,000. This would at least cover two-thirds of the average cost of funeral expenses in Quebec.
And know that this FADOQ recommendation is in no way exaggerated. You should know that in 1997, the QPP death benefit amounted to $3,590. Quebec reduced it to $2,500 starting the following year, 1998.
If the death benefit paid in 1997 had been indexed to inflation, it would amount to $6,283 today. This is almost equivalent to the amount of the death benefit that the CNESST pays for the funeral expenses of deceased victims of work accidents.
By the way, of the entire range of benefits (retirement pensions, disability benefits, survivors’ benefits, surviving spouse’s pensions) paid by the QPP, only the death benefit has remained in good shape over the last 26 years.
DOES QUEBEC HAVE THE MEANS?
Does the Quebec government have the means to comply with FADOQ’s request and increase the QPP death benefit to $5,000? This would represent an additional outlay of approximately $190 million for the QPP.
First, know that it will not cost him a cent out of his pocket since it is the workers and businesses who contribute to the QPP.
Two, the RRQ has a reserve of 107 billion dollars.
Three, after 26 years, it is time for the Quebec government to “unfreeze” the QPP death benefit.
Being “buried” with dignity is also part of life!