| My contributions to the DGPP
(1 min 13 s)
What is the DGPP contribution rate?
How are contributions split between my employer and myself? |
The Desjardins Group Pension Plan (DGPP) is a
defined benefit pension plan. 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 (not based on the contributions made).
How are the costs of the plan shared?
Costs are shared between employees and employers; employees pay 35% of all plan costs and employers pay 65%.
What is the employee's contributions rate?
The DGPP takes the Québec Pension Plan (QPP) or Canada Pension Plan (CPP) into account when determining your contribution as well as in the formula it uses to calculate your defined benefits pension when you retire.
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
*MPE:
Maximum Pensionable Earnings at QPP or CPP. The MPE is revised on a yearly basis.
Contribution examples:
Salary
|
2024 Annual employee contributions
(MPE 2024 = $68,500)
|
2025 Annual employee contributions
(MPE 2025 = $71,300)
|
$30,000
|
$1,770
| $1,320
|
$40,000
|
$2,360
| $1,760
|
$50,000
|
$3,136 | $2,325
|
$60,000
|
$4,066
| $3,105
|
$80,000
|
$5,926
| $4,665
|
$100,000
|
$7,786
| $6,225
|
$120,000
|
$9,646
| $7,785 |
$140,000
|
$11,506
| $9,345
|
$197,625 *
|
$16,865
| - - -
|
*
Maximum contributory salary in 2024, which varies from year to year.
**Maximum contributory salary in 2025, which varies from year to year.
The contribution rate is expressed as a % of pensionable earnings. How do you define earnings?
The earnings on which you are required to contribute correspond to your regular remuneration (basic or direct salary). Contributions must also be deducted from any lump sum paid in lieu of a normal salary increase or retroactive salary increase. You are not required to make contributions on any other type of remuneration. For example, any lump sum paid as a special increase, bonus, indirect remuneration, overtime or to purchase a car, are not included in pensionable earnings.
If you work fewer hours than the number of hours in the regular work week, you are required to contribute on the salary corresponding to the total number of hours worked, but at the regular rate. The number of contribution hours may not exceed the number of regular hours you would work if you were a regular full-time employee.