Financial position

​​Stable and healthy

​The Plan remains robust, even in turbulent markets. Our strategies help the DGPP stay on track financially, especially considering the fluctuation of long-term interest rates. During periods of interest rate variability, the strategies we have in place mitigate the impact on the financial situation by ensuring similar fluctuations in the value of the Plan's assets and actuarial liabilities (that is, the value of benefits promised to Plan members).

The Plan's most recent financial review, carried out as at December 31, 2023, estimates that the two main measures of the DGPP's financial health have improved over the year and are now above balance. First, the funding ratio, which measures the Plan's ability to meet its obligations over the long term, went from 119% to approximately 120%. This remains well above the stabilization target required under Quebec legislation, which is 113% for the DGPP.

The solvency ratio posted significant gains in 2023, going from 97% to an estimated 103% based on the most recent financial review. The solvency ratio determines the DGPP's ability to pay benefits if they're transferred if membership ceases or if the Plan is terminated.

In both cases, the DGPP benefitted from strong returns from the performance portfolio and contributions from Desjardins Group Plan members and employers. The DGPP's financial health improved despite the creation of an additional reserve for high short-term inflation.

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Sound management

The DGPP's funding level is regularly monitored each year. In 2024, Desjardins will maintain the same funding hypotheses as 2023, which means that approximately $840 million will be contributed to the DGPP by Plan members and employers. These funds will help the DGPP maintain its enviable position in an uncertain economic environment. T​his decision stems from a responsible, prudent and long-term oriented management approach​.


The various types of actuarial valuation

Valuation on the going concern and solvency basis

  • Requirement by the regulatory (Retraite Québec) and fiscal (Canada Revenue Agency) authorities.
  • Payment, in trust, on behalf of the salary and employer contribution plan to finance benefits pursuant to these valuations only. 

Valuation on the going concern basis

  • According to this scenario, the Plan will last over t​ime.
  • The actuarial scenarios used are aimed at maintaining a constant level of employee and employer contributions in terms of percentage of salary.
  • The annual interest rate used is constant. 

Valuation on the solvency basis

  • The Plan will end at the valuation date, according to this scenario. All employees will end their employment. No scenario for salary increases is used.
  • The sc​enarios used are prescribed by law and reproduce the market scenarios (purchase of insured pensions). 

Valuation on the accounting basis [Canadian Institute of Chartered Accountants (CICA), chapter 3461]

  • Production for employers’ financial statements.
  • Use of the scenarios prescribed by the CICA (Canadian Institute of Chartered Accountants), even if produced by an actuary.
  • Recognition of retirement costs that, in the long term, will be aligned with the required contributions in the valuation on the going concern basis.
  • Valuation on a continuity basis.