Defined benefit pension plan

****	My pension plan (0 min 45 s) What type of pension plan is the Desjardins Group Pension Plan (DGPP)? What are the advantages of the plan?

Participating in a defined benefit pension plan like the DGPP means you'll receive a retirement pension with a guaranteed and predetermined amount every month throughout your retirement.

The DGPP offers precious peace of mind and financial advantages.

The plan in 5 steps


1 Guaranteed payment	2 Contributions	3 Management of the plan's assets	4 Maintenance of the plan's financial health	5 Pension payments

1. Guaranteed payment

In a defined benefit pension plan like the DGPP, your employer agrees to pay you a predetermined retirement pension for the rest of your life. The pension amount is calculated based on the average salary of your best-paid years and the number of years you were a plan member, and can be easily estimated using the pension simulator. No matter what happens with the economy, you can be sure of receiving your fixed amount every month for as long as you live. Now that's peace of mind!

2. Contributions

With every paycheque, you contribute a portion of your gross salary to the pension fund, while benefitting from tax cuts. Your employer also contributes $1.85 for every dollar you put in. In other words, employee contributions account for 35% of DGPP funding, while employer contributions account for 65%, which works out quite well for you.

3. Management of the plan's assets

The plan's financial experts strategically invest all of the plan members' and employers' contributions to the retirement fund. They ensure that the assets grow by seizing the best investment opportunities and managing risk wisely. With a defined benefit pension plan like the DGPP, our experts can take care of these things so you can focus on the things that matter most to you.

4. Maintenance of the plan's financial health

Sound management of the DGPP is essential to guarantee that all plan members are paid the benefits they're entitled to. To this end, plan administrators combine innovation and foresight to ensure the plan's long-term success and honour commitments to all plan members. Their priority is to provide you with a secure, sustainable retirement plan.

5. Pension payments

Once you've reached your age of eligibility, you can retire and start receiving your guaranteed benefits. You can decide to receive the same amount for your entire retirement, or you can choose to spread out your benefits differently. For example, you can get more money up front and receive less later. These different options give you flexibility and the freedom to make choices based on your financial needs.

The DGPP is also a great way to save money for your retirement, even if you leave Desjardins before age 55. At that point, you can either keep your pension in the plan or transfer an amount equivalent to its value, which totals at least 175% of your contributions with interest.¹ And that's more generous than most defined contribution plans on the market!

¹Applies on service from 2009, subject to locked-in rules and the application of the solvency rate for transfers out.

Desjardins Group Pension Plan

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Defined benefit pension plan

1. Guaranteed payment

2. Contributions

3. Management of the plan's assets

4. Maintenance of the plan's financial health

5. Pension payments

Defined benefit pension plan

1. Guaranteed payment​​

2. Contributions​​

3. Management of the plan's assets​​

4. Maintenance of the plan's financial health

5. Pension payments​

1. Guaranteed payment

2. Contributions

3. Management of the plan's assets

5. Pension payments