RRCHCN: Centre hospitalier Cote-des-Neiges Pension Plan

What is the RRCHCN?

The RRCHCN is a defined benefit pension plan that was created for employees of the Centre hospitalier Cote-des-Neiges in Montreal. It has been in effect since February 20, 1978, and is governed by the Act respecting the Government and Public Employees Retirement Plan (RLRQ, chapter R-10), the same legislation that governs the RREGOP.

This is a small, historical plan. Since its closure, only retirees and beneficiaries remain. No new employees can join the plan, and no contributions are being made by active participants. The plan continues to be administered by Retraite Quebec.

For financial advisors, the RRCHCN represents a niche case. Although the pool of beneficiaries is limited, an advisor may encounter a retired client from this institution or a surviving spouse receiving a pension from the plan. Understanding its features, particularly its more generous indexation compared to RREGOP, is an asset when planning for these clients.

Benefit formula

The annual pension from the RRCHCN is calculated as follows:

Annual pension = 2% x years of service (max 35) x average salary of the best 6 consecutive years

The accrual rate is identical to RREGOP at 2% per year of credited service. However, the maximum is 35 years (not 40 as in RREGOP), meaning the maximum pension before QPP coordination represents 70% of the average salary (2% x 35 = 70%).

Best 6 consecutive years average

An important distinction from RREGOP is that the salary average is calculated over the best 6 consecutive years, rather than the best 5 years (which do not need to be consecutive under RREGOP). The consecutive requirement can be slightly less favourable for employees whose salary fluctuated significantly, since the 6 years must follow each other without interruption.

QPP coordination

As with RREGOP, the RRCHCN pension is coordinated with the Quebec Pension Plan (QPP). The reduction formula is:

Reduction = 0.7% x years of service from 1966 x pensionable salary not exceeding the average MPE (Maximum Pensionable Earnings)

This coordination considers only years of service accumulated from 1966 onward, the year the QPP came into effect. The reduction is permanent and applies at age 65, whether or not the retiree has applied for their QPP pension. It is therefore essential for any RRCHCN beneficiary to apply for their QPP pension no later than age 65.

Retirement conditions

Unreduced retirement

A participant could retire with an unreduced pension if they met one of the following conditions:

1. Having reached age 60 with at least 5 years of service.

2. Having reached age 55 with at least 30 years of service.

A minimum of 5 years of service is required to qualify for a pension. Below this threshold, the participant receives a refund of contributions rather than a life annuity.

Early retirement with reduction

A participant could take early retirement starting at age 50, with a 5% reduction per year of anticipation relative to the earliest date they would have qualified for unreduced retirement. This penalty is permanent and applies for the entire duration of retirement.

For example, a participant who retired at age 56 when they would have met the unreduced conditions at age 60 would face a reduction of 4 years x 5% = 20%.

Pension indexation

Indexation is one of the most notable advantages of the RRCHCN compared to RREGOP. The RRCHCN pension is indexed at the full TAIR (Rate of Increase in the Pension Index), providing complete protection against inflation.

In 2026, the TAIR is 2.0%. This means a RRCHCN retiree who received $25,000 in 2025 receives $25,500 in 2026. This indexation applies to the entire pension, with no distinction based on the period of service.

By comparison, RREGOP provides full TAIR indexation only for service accumulated before July 1, 1982. For service after that date, indexation is partial (TAIR minus 3% or 50% of TAIR). The RRCHCN is therefore significantly more generous in this regard, meaningfully preserving retirees' purchasing power over the long term.

Death benefits

Surviving spouse pension

Upon the death of a RRCHCN retiree, the surviving spouse (married, civil union, or recognized common-law partner) is entitled to a life annuity equal to 50% of the pension the retiree was receiving.

Children's pension

Each dependent child is entitled to a pension equal to 10% of the retiree's pension, up to a maximum of 40% for all children combined. If the retiree has no surviving spouse, the pension per child increases to 20%, up to a maximum of 80%.

Death guarantee

The plan includes a minimum death guarantee equal to the greater of: (a) the participant's contributions plus 4% interest, or (b) 5 times the retiree's annual pension. If benefits paid to the surviving spouse and children are less than this amount, the difference is paid to heirs or designated beneficiaries.

RRCHCN vs. RREGOP comparison

While both plans are governed by the same legislation (RLRQ c. R-10) and share several characteristics, key differences distinguish them:

Salary average: the RRCHCN uses the best 6 consecutive years, while RREGOP uses the best 5 years (not necessarily consecutive).

Maximum years: the RRCHCN caps at 35 years of service (maximum pension of 70%), compared to 40 years under RREGOP (maximum pension of 80%).

Indexation: the RRCHCN provides full TAIR indexation on the entire pension. RREGOP provides partial indexation for service after July 1, 1982 (TAIR minus 3% or 50% of TAIR). This is the most significant advantage of the RRCHCN.

Early retirement: the RRCHCN reduction is 5% per year (starting at age 50), compared to 6% per year under RREGOP (starting at age 55).

Status: the RRCHCN is a closed plan with no active participants, while RREGOP is the largest supplemental pension plan in Canada with nearly 600,000 participants.

Why it matters for financial advisors

Even though the RRCHCN is a small, closed plan, it remains relevant for advisors for several reasons. Retirees from the former Centre hospitalier Cote-des-Neiges continue to receive pensions, sometimes for decades. Their surviving spouses may also be clients.

The full TAIR indexation is a positive element that the advisor can incorporate into overall planning: the purchasing power of this pension is better protected than a RREGOP pension, which may reduce the need for supplemental savings to offset inflation.

The advisor should also ensure the client has applied for their QPP pension no later than age 65, since coordination applies automatically. Finally, understanding the death guarantee (contributions + 4% or 5 times the annual pension) can be useful when assessing the client's life insurance needs.

Frequently asked questions