I have a deferred pension

Desjardins Group offers its employees a competitive and valuable defined benefit pension plan that contributes to their peace of mind.

When you leave Desjardins Group, several options are available regarding your Desjardins Group Pension Plan (DGPP) benefits. Among these options, under certain conditions, you may choose to defer your pension.

As long as you are under age 55, you can transfer the value of your benefits out of the DGPP. To learn more about your options, request a Calculation of vested pension value through your secure online file or contact Member Services. Please note that once you transfer your benefits out of the DGPP, it is not possible to transfer them back in.

To learn more about your options when leaving Desjardins Group, visit the I’m leaving my job page.

Use the pension simulator to estimate your DGPP pension at different retirement dates. You will also see the pension options that could be offered to you.

What is a deferred pension?

A deferred pension is a pension which payment is postponed. This means you keep your vested pension in the DGPP, and your benefits are preserved with the promise of regular payments in the future.

Advantages of choosing a deferred pension

A deferred pension relieves you of the need to manage investments or make complex decisions—these responsibilities are handled by your pension plan.

Pension calculation

The amount of your vested pension is based on your highest career earnings and the number of years you participated in the plan.

When you leave Desjardins Group, your salary and years of participation used in the pension calculation become fixed. Only indexation can increase your deferred pension.

Indexation of the deferred pension

To help offset the rising cost of living, your deferred pension may be indexed annually. By increasing your pension amount each year, the DGPP’s indexation helps protect your purchasing power against inflation.

Like the Québec Pension Plan (QPP), the DGPP’s indexation rate is based on the Canadian Consumer Price Index (CPI). Specific rules apply depending on the period during which the pension was accrued, and whether you are retired or not.

Indexation of the deferred pension before retirement

• Pension vested before 2009
Your pension will be increased annually based on the CPI (maximum 4%) until retirement.
• Pension vested since 2009
Your pension will be increased annually by 50% of the CPI (maximum 2%) until age 55.

To learn more about indexation during retirement, visit the Pension indexation page.

Retirement age

The normal retirement age is 65, but you may retire as early as age 55.

If you choose to retire before the DGPP’s normal retirement age (between 55 and 65), your pension will be paid over a longer period than originally planned. As a result, the amount of your pension may be reduced to reflect this extended payment period. This is called an early retirement reduction. On the other hand, you will benefit from receiving your pension earlier and for a longer time.

For service before 2009

Your pension may be reduced based on your age and years of participation at the time of termination, using the most advantageous method for you:

• 3% multiplied by the number of years remaining until age 65

• 3% multiplied by the number of years remaining until age 57, plus 3% multiplied by the number of years remaining until your age and continuous service total 85.

More specifically, the applicable reduction is calculated monthly and corresponds to 0.25% per month of early retirement.

For service since 2009

If you left Desjardins Group before age 55 and deferred your pension, the amount is reduced on an actuarial equivalence basis.

If you left Desjardins Group after age 55, your pension will be reduced as follows:

• 4% multiplied by the number of years remaining until age 62 (equivalent to 0.33% per month).

Rehiring at Desjardins Group

If you return to work at Desjardins Group, your previous service and salary will be considered in the calculation of your deferred pension if both of the following conditions are met:

You become an active DGPP participant again at least 6 months after the end date of your previous participation (or within 90 days if your participation ended before January 1, 2020).
Your vested pension from your previous participation remained in the DGPP. In other words, you deferred your pension and did not transfer it out of the plan.

If you return to the DGPP more than 6 months after your previous participation ended, you will be considered a new participant. You will keep your deferred pension and begin a new participation. Your new service and salary will not be added to your previous participation.

Leaving Canada

After two years of non-residency in Canada, you may transfer the value of your benefits to a non-locked-in account. Proof must be provided, and certain tax rules apply.

Desjardins Group Pension Plan

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Préférences

I have a deferred pension

What is a deferred pension?

Pension calculation

Indexation of the deferred pension

Retirement age

Rehiring at Desjardins Group

Leaving Canada

I have a deferred pension

What is a deferred pension?​

Pension calculation

Indexation of the deferred pension​

Retirement age

Rehiring at Desjardins Group

Leaving Canada

What is a deferred pension?

Indexation of the deferred pension