CCQ Retirement: When Can You Transfer Your Fund to a LIRA?

A rule often circulates in the industry: to transfer your CCQ retirement fund into a locked-in retirement account, you must have left construction for two years before reaching 50 years old. Some conclude that you need to stop working at 47 and a half.

This statement is too simplistic and can lead to a poor career decision. The regulation does not set a universal date at 47 and a half. Instead, it imposes two conditions at the time of the request: not being eligible for an early pension and having no work hours recorded in the file during the 24 consecutive monthly work periods immediately preceding the request.

The age of 50 matters because a first form of early retirement may become accessible from this age. But being 50 does not automatically make every worker eligible for a pension. The accumulated hours also factor into the calculation.

This guide explains the official rule, the most common scenarios, and what a transfer to a LIRA actually changes. For an irreversible decision, always ask the CCQ for a written calculation based on your file and, if necessary, have a financial planner compare the options.

The short answer: two conditions, not a magic date

Article 140 of the Regulation respecting supplementary social benefits plans in the construction industry allows a participant to request the transfer of a departure benefit only if they simultaneously meet the following two conditions.

First condition: no work hours must have been recorded in their file during the 24 consecutive monthly work periods immediately preceding the request.

Second condition: they must not be eligible for an early pension at the time of the request.

The CCQ page on cessation of participation summarizes the same rule in plain French: the employee must have left the industry before becoming eligible for a pension and must have no credited hours during the 24 months preceding their request.

In other words, two workers of the same age can receive different answers. The number of hours in their file, their date of birth, their date of last credited hour, and certain characteristics of their participation in the plan can change the outcome.

What does 24 monthly periods without hours really mean?

Article 106 of the same regulation considers a participant as active until 24 consecutive monthly periods have passed without any work hours being credited to their account.

Therefore, it is not enough to stop working for a specific employer. What matters is the absence of credited hours in the CCQ retirement file during the entire required period.

A new hour can delay the request date

If an hour is credited to the file during the 24 monthly periods window, the condition of Article 140 is no longer met. The full period without hours must pass again before a request can meet this criterion.

Before calculating your date, check your statement and ask the CCQ for the exact date of the last period when an hour was credited. A late payment, an employer correction, or a declaration made after your last physical day on the site can create a discrepancy between your memory and your official file.

The 24 months do not guarantee the transfer

Reaching 24 months without hours does not automatically entitle you to the departure benefit. You must also not be eligible for an early pension on the date the request is evaluated.

Why the age of 50 creates confusion

The CCQ indicates that no pension is payable before 50 years old. From 50 years old, an employee may become eligible for a reduced early pension if they meet the rule of 60.

The calculation is as follows: age + hours worked divided by 1,400 = 60 or more. The age is calculated precisely, taking into account the days, not just the year of birth.

Example: 50 years old and 14,000 hours

At 50 years old, an employee with 14,000 hours meets the rule of 60: 50 + 14,000 ÷ 1,400 = 60. They are therefore eligible for a reduced early pension. Even if they have no hours for 24 months, the condition "not being eligible for an early pension" is no longer met.

Example: 50 years old and 5,000 hours

At 50 years old, an employee with 5,000 hours gets about 53.57 in the same calculation. The age of 50 alone is therefore not enough to meet the rule of 60. If they have also completed the 24 monthly periods without hours, they could still be eligible for a departure benefit, subject to CCQ confirmation and the rules specific to their file.

Example: 48 years old and 24 months without hours

Since no pension is payable before 50 years old, a 48-year-old employee who has completed the 24 monthly periods without hours can generally request that the CCQ establish their cessation options, unless a particular condition or exception applies to their file.

Is it absolutely necessary to leave at 47 and a half?

No, not as a general rule. Leaving at 47 and a half is an approximate way to aim for 24 months without hours before the fiftieth birthday. However, this shortcut ignores the dates of monthly periods, the hours actually credited, and especially the fact that an employee aged 50 to 54 is only eligible for a pension if they meet the rule of 60.

The real window closes when the employee becomes eligible for an early pension, not simply at the stroke of midnight on their 50th birthday. At 55, eligibility for a pension significantly broadens; according to the rules published by the CCQ, the departure transfer under section 140 is generally no longer the option offered.

It would be risky to leave a job, give up hours, or change careers solely to meet a date read elsewhere. First, ask the CCQ: the date when your 24 periods will be completed, the date when you will become eligible for a pension, and the estimated amounts for each option.

After an eligible cessation, what are the two choices?

When an employee meets the conditions, the CCQ presents two avenues. It does not choose on their behalf.

Choice 1: retain rights in the CCQ plan

The employee can leave their rights in the plan and wait until they reach the required age to receive a pension. The CCQ indicates that the portion of the pension from the defined benefit account, if there is one, will be increased by a 12.5% supplement.

This option maintains capital management within the plan. It does not produce an immediate cheque and does not transform accumulated rights into a personal investment.

Choice 2: request a departure benefit

The employee can request a cessation of participation benefit. The value includes the defined benefit portion, if applicable, adjusted according to the plan's solvency ratio without exceeding 100%, plus 100% of the value of the defined contribution account rights, if applicable.

This explains why the transferable amount is not necessarily identical to a total of contributions read on old pay stubs or a statement. The retirement contributions visible on a CCQ pay stub fund rights governed by the plan; they do not constitute a bank account that the employee can freely withdraw from.

A LIRA is not a cash withdrawal

A locked-in retirement account is a vehicle intended to preserve savings from a pension plan. According to Retraite Québec, the money in a LIRA is locked-in: it must be used to provide retirement income, notably through a transfer to a life income fund or by purchasing a life annuity.

A transfer to a LIRA does not mean that the money arrives in your chequing account. It also does not become an ordinary RRSP. Funds in a LIRA generally cannot be transferred to an RRSP or a RRIF, except in situations of repayment allowed by applicable rules.

The LIRA cannot be used for the Home Buyers' Plan like an ordinary RRSP. Instead, it gives the holder the choice of financial institution and investments allowed by their contract, while maintaining the lock-in intended for retirement.

Where can the benefit be transferred?

According to the CCQ, the benefit may need to be transferred to a locked-in retirement savings vehicle. Options may include a LIRA, a life income fund, an annuity contract, or another pension plan that accepts the transfer, depending on age, amount, and applicable rules.

If the total value of the rights is less than 20% of the maximum pensionable earnings for the year in question, the regulation provides for a different payment or transfer possibility. Since the monetary threshold changes with the maximum pensionable earnings, the amount indicated on the CCQ form should be used rather than an old value found online.

How to request options from the CCQ

The CCQ does not automatically send the cessation form to every worker who reaches 24 months without hours. The employee must contact them and request that their eligibility be verified.

The options choice form is valid for 60 days from the request. If it is not returned before the deadline with the required documents, a new request is necessary. The options and amounts may then be different.

The personalized form is essential because it indicates the actual amounts, the value of different portions, the permitted destinations, and the deadlines. An example calculation found elsewhere does not replace this document.

Exceptions for disability or reduced life expectancy

Sections 140.1 and 140.2 provide exceptions to the 24-month period for a participant who is not eligible for an early pension and who has a permanent total disability, or whose life expectancy is reduced to less than two years.

These situations require specific evidence and criteria. They should not be interpreted from a general summary; the CCQ must confirm eligibility and the required documents.

Questions to ask before deciding

What is the last monthly period where an hour was credited? This date is used to verify the actual start of the 24-period deadline.

On what exact date will I become eligible for an early pension? The answer depends on the precise age, hours, and plan rules.

What amount belongs to each portion of the plan? Request the value of the defined benefit account, the defined contribution account, and the effect of solvency.

How much would I receive by leaving my rights in the plan? Compare the projected pension, the applicable supplement, and the start age.

What transfer destinations are allowed? Confirm the type of account, the institution, the deadlines, and the spouse's signatures if applicable.

Key takeaways

The transfer of a departure benefit from the CCQ plan does not depend on a universal rule requiring departure at 47 and a half years old. It depends on two tests applied at the time of the request: 24 consecutive monthly periods without credited hours and no eligibility for an early pension.

Starting at age 50, the rule of 60 can make some employees eligible for a pension, while others are not yet eligible. A LIRA remains a locked-in vehicle for retirement, not a cash withdrawal.

Before stopping work or transferring a significant amount, obtain the personalized form from the CCQ and compare the two options with the actual amounts. The right decision depends on the individual record, not a rounded age.