Funding
Cost of benefits
In 2010, the QPIP paid out 1 705 millions dollars in benefits. The following tables present the distribution of the benefit amounts paid, depending on the type of benefits and the sex of recipients (PDF, 14 KB)
In 2010, fees paid to the QPIP totalled 1 621 millions dollars.
Factors having an impact on finances
The bureau de l’actuaire en chef does a regular follow-up of benefits paid under the Plan and must submit an actuarial valuation of the Plan annually. The first actuarial assessment on December 31, 2006 was tabled before the Assemblée nationale at the end of 2007.
QPIP cost estimates are based on hypotheses regarding various factors that may have varying degrees of financial impact. When setting premium rates, anticipated QPIP disbursements and premiums—which are largely based on economic conditions—must be taken into account. The main factors of variability considered are the following:
- The number of benefit recipients, which depends on the birth rate and economic activity (notably the presence of women in the job market)
- Benefit recipient behaviour, which is linked to the duration of the leave, the choice of plan, and whether benefits are shared between both parents
- The economic situation, particularly the labour force participation rate, the unemployment rate, and the growth rate in wages
With regard to recipient behaviour, the hypotheses formulated thus far have mainly been based on the experience of the maternity, parental, and adoption benefits of the federal employment insurance plan, given that the QPIP has only just recently been introduced.
Tools have been created to periodically monitor the financial situation.
Main funding monitoring tools
The QPIP’s financial position and growth must be closely monitored to ensure it continues to meet Quebecers’ needs while complying with basic funding guidelines. Examples of funding monitoring tools:
- An annual actuarial valuation that projects the QPIP’s financial position over a period of at least 5 years, the first having been tabled before the Assemblée nationale at the end of 2007 (consult the Rapport actuariel 2012 (PDF, 580 KB, French only) for more information.
- Financial statements of the Parental Insurance Fund and Conseil de gestion de l’assurance parentale
- Short and long term financial flow projections
- Profiles of clienteles and recipient behaviour
- Regular Parental Insurance Fund investment policy and fund manager performance monitoring
Note: The information contained on this website cannot be used for legal interpretation purposes and does not replace the provisions of the relevant statutes and regulations.
