The annual maximum Québec Pension Plan Contribution is not required to be prorated when an employee:

• A. turns 70
• B. turns 65
• C. retires
• D. transfers to another job

Answer: (A)

The main idea is that QPP contributions end when the employee reaches age 70. Because no further contributions are required after hitting 70, there isn’t a need to prorate the year’s maximum contribution for the months after that date. The annual maximum is effectively reached or closed off at the moment the employee turns 70, so you don’t adjust it for remaining months of the year. Turning 65, retiring, or transferring to another job don’t create the same automatic stopping point in the year, so the prorating rule specifically applies to reaching age 70.