Thank you for your question. This is a rather technical matter and I will try to explain it as best I can. We call it the 15-42 formula. Allow me to explain the formula to you.
It is described as follows: According to this formula, contributors would still be able to drop 15% of the lower-earning periods during their career. For the purposes of pension calculation, these years are replaced by an average for the other years, which is then divided by 42, or the number of years between 18 and 59 years. Using this formula, claimants will receive the same amount that they now receive with the current formula, if they choose to retire at 60 years of age. However, for every year they continue to work after the age of 60, their pension amount will be improved, whether or not they have applied for their pension. What we are proposing is a pension calculation formula that makes working beyond 60 years an attractive option, without any radical or repressive cuts as the government is proposing. For nearly 30 years, the feminist movement has been demanding improvements to the QPP to replace the 50% of pre-retirement income. Maximum eligible earnings would be comparable to eligible earnings under the Quebec automobile insurance plan and the Quebec Parental Insurance Plan.
Basically, under this formula, 15% of lower-earning periods can be dropped when calculating an average for 42 years.