The Desjardins Group offers its employees an advantageous and competitive
defined benefit pension plan, contributing to their peace of mind.
The Desjardins Group Pension Plan ("DGPP" or "Plan") promises a retirement income that is protected from market volatility. Your pension amount is determined based on your highest career earnings and the number of years of participation to the DGPP, according to a pre-established formula.
| (8 min 12 s)
Why is the Desjardins Group Pension Plan (DGPP) a valuable part of your compensation?
What makes your pension plan stand out from others? |
The DGPP is different from other plans for several reasons: -
• Attractive employee/employer cost-sharing ratio (35/65)
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• Competitive formula for calculating pension at age 65
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• Minimum return of at least 175% of your contributions with interest for your retirement if you leave Desjardins before age 55 and transfer the value of your pension (for service from 2009 and subject to the application of the solvency ratio)
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• Favourable early retirement conditions
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• Indexation of pension upon retirement, based on a known limit
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• Great flexibility in pension forms, including several focused on the financial security of the retiree’s spouse
To learn more, visit the Defined benefit pension plan page.
Eligibility criteria
| My eligibility for the DGPP
(1 min 08 s)
What are the eligibility criteria for the DGPP?
Does it depend on my age, my employment status, my hours worked? |
To learn more, visit the Eligible for the DGPP page. Pension calculation
The
pension simulator is available in your secure file to estimate your pension amount payable by the DGPP on different retirement dates. It also presents the annuity options that may be available to you. Temporary annuities providing an advance on your retirement income between the ages of 55 and 65 may also be available.
At the normal retirement age of 65, your pension will be calculated as follows:
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Pension calculation
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Pension payable
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For the service
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Years of service |
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Pension credit 1
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Average salary
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(Sum of 3 periods)
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Before 2009 |
Credited years |
X
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1.3% / 2%
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X
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Best 5 years
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=
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Pension payable at age 65 (A)
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From 2009 to 2012 |
Credited years
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X |
1.5% / 2% |
X
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Best 5 years |
=
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Pension payable at age 65 (B) | | After 2012 |
Credited years
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X
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1.5% / 2%
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X
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Best 8 years |
=
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Pension payable at age 65 (C)
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Total pension paid by the plan, on top of the QPP/CPP pension:
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A + B + C 2
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¹
The pension credit gives a percentage (1.3% or 1.5%) of average salary up to average maximum pensionable earnings (MPE5) and 2% of average salary exceeding average MPE5.
² The DGPP pension payable cannot be greater than the maximum for tax purposes.
Contribution rates
| My contributions to the DGPP
(1 min 13 s)
What is the DGPP contribution rate?
How are contributions split between my employer and myself? |
Current formula until December 21, 2024:
5.9% of pensionable earnings up to 65% of the MPE + 9.3% of the excess
Formula starting December 22, 2024: 4.4% of pensionable earnings up to 65% of the MPE + 7.8% of the excess
To learn more, visit the following pages:
Age of retirement
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• Retirement possible starting at age 55.
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• For service before 2009, the actuarial adjustment varies by age and years of continuous service. No adjustment is applied on the amount of your pension if you retire at age 57 or over and that the sum of your age and years of continuous service adds up to 85.
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• For service after 2009, the adjustment is 4% per year for years missing between your age at retirement and age 62.
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• As long as you are employed by a Desjardins employer, you can continue to participate in the Plan and increase your pension until the last day of the year following your 71st birthday.
Normal pension characteristics
For service before 2013: -
• With a spouse upon your retirement: Life annuity, guaranteed 10 years, reduced to 60% and payable to spouse when retiree dies.
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• Without a spouse upon your retirement: Life annuity, guaranteed 15 years.
For service from 2013: -
• With or without a spouse upon your retirement: Life annuity, guaranteed 10 years.
Pension indexation
For service before 2013: -
• Annual indexation as of January 1 following retirement, based on the CPI, up to a maximum of 3% per year.
For service from 2013:
- • Indexation as of January 1 from age 65, based on the CPI, up to a maximum of 1% over a fixed period of 10 full years (increase applied on a pro-rata basis on the first and last year of indexation).
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