It's good, there should be rank decay as well if you don't queue. Ladder systems like this don't work well if you can't derank and can't decay down to another rank. Everyone just grinds at the start of PvP like they did earlier, and they're forever a high rank for the rest of time, while the pool of players in lower ranks gets smaller and ranking up gets harder.
A rank reset to the bottom of the ladder for everyone every so many season might be a good idea too.