The current death benefit paid by the Régie des rentes du Québec (RRQ) as compensation for the funeral expenses of a deceased person who contributed to the RRQ is $2,500, a ridiculously low amount dating back to 1998 comes from.
None of the nine finance ministers in the last 26 years have 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 how this $2,500 amount of QPP death benefit to cover the funeral expenses of a deceased person is completely different from reality, I refer to the two other death benefits paid by public government agencies in Quebec.
If a person dies as a result of an industrial accident covered by the CNESST (Commission on Standards, Equity, Health and Safety at Work), the CNESST will pay the estate an amount of $6,318 to cover the deceased's funeral expenses.
In the event of death as a result of a car accident, the Société de l'assurance automobile du Québec (SAAQ) will reimburse the estate for funeral expenses in the amount of $8,339.
- Listen to the economy part with Michel Girard above QUB :
WHERE IS THE LOGIC?
How to explain such a gigantic gap between the death benefit of the RRQ, the CNESST (which is 2.5 times higher) and that of the SAAQ (which is 3.3 times higher)? However, here we compare the death benefits offered by three organizations from the same Quebec government.
Where is the logic of the Quebec government that has frozen the QPP death benefit at just $2,500 for the past 26 years?
In the memorandum it presented to Minister Eric Girard as part of the budget consultations currently underway, FADOQ reminds him that, according to the Corporation of Thanatologists of Quebec, the average cost of funeral products and services has increased from $4907 in 1997 to is around $7557 in 2022.
This means that the current QPP death benefit barely covers a third of average funeral costs. Worse, the $2,500 benefit is also taxable.
REQUEST FROM FADOQ
FADOQ represents approximately 550,000 seniors and is asking Minister Eric Girard to increase the amount of said QPP death benefit to at least $5,000. This would cover at least two-thirds of the average funeral costs in Quebec.
And be aware that this FADOQ recommendation is by no means exaggerated. You should know that the QPP death benefit in 1997 was $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 be $6,283 today. This is almost equal to the amount of the death benefit that the CNESST pays for the funeral costs of deceased victims of industrial accidents.
By the way, of the entire range of benefits paid by the QPP (old-age pensions, disability pensions, survivors' pensions, spouse's pensions), only the death benefit has remained in good condition over the last 26 years.
DOES QUEBEC HAVE THE FUNDS?
Does the Quebec government have the resources to comply with FADOQ's request and increase the QPP death benefit to $5,000? This would represent an additional expenditure of approximately $190 million for the QPP.
First, you should know that since it is the workers and companies that contribute to the QPP, it will not cost him a penny out of his pocket.
Second, the RRQ has a reserve of $107 billion.
Third, after 26 years, it is time for the Quebec government to “release” the QPP death benefit.
A dignified “burial” is also part of life!