The Desjardins Group Pension Plan (DGPP) is a
defined benefit pension plan. Its objective is to provide you with a retirement income based on your credited years of service in the Plan and your average earnings. For the years of service up to December 29, 2012, your pension benefit will be determined based on your five best-paid years (Salary5). For your service as of December 30, 2012, your pension benefit will be determined based on your eight best-paid years (Salary8).
How will your pension be calculated?
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Pension calculation
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Pension payable
|
|
Years of service
| |
Pension credit1
|
|
Average salary
|
|
(Sum of 3 periodes)
|
Before 2009
|
Credited years
|
X
|
1.3% / 2%
|
X
|
5 best years
|
=
|
DG pension payable at age 65 (A)
|
From 2009 to 2012
|
Credited years
|
X
|
1.5% / 2%
|
X
|
5 best years
|
=
|
DG pension payable at age 65 (B)
|
| After 2012 |
Credited years
|
X
|
1.5% / 2%
|
X
|
Best 8 years
|
=
|
DG pension payable at age 65 (C)
|
Total pension paid by the plan, on top of QPP/CPP pension :
|
|
A+B+C2
|
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.
Plan eligibility criteria for temporary and casual employees (Reference: DGPP Regulation, Section 4-2)
To determine eligibility, hours or earnings earned with one or more Desjardins employers must be accumulated. It is the employer's responsibility to ensure that the eligibility criteria are met.
If you meet the criteria for participation in the DGPP, you will be notified by your employer via Workday. If your participation is optional, you will receive a task in your Workday inbox to indicate your choice to participate or not in the DGPP.
Employees are eligible only as of the following January 1, if they have worked at least 700 hours or if they have received remuneration of at least 35% of the yearly maximum pensionable earnings (YMPE).
-
• Employee aged from 25 up to 65 years old: mandatory membership
-
• Employee under the age of 25 or 65 and over: optional membership
The employee assumes 35% of the cost of the plan while employers undertakes 65%.
The current contribution rate is:
5.90% on pensionable earnings up to 65% MPE + 9.30% on exceeding amount.
*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)
|
$30,000
|
$1,770
|
$40,000
|
$2,360
|
$50,000
|
$3,136 |
$60,000
|
$4,066
|
$80,000
|
$5,926
|
$100,000
|
$7,786
|
$120,000
|
$9,646
|
$140,000
|
$11,506
|
*
Maximum contributory salary, which varies from year to year.
When you start participating in the DGPP, the required contributions will be deducted automatically from your pay.
Within 6 weeks of starting your membership, you will receive an email from the DGPP. This email will provide you with the information you need to access your file on the DGPP's secure site and designate your beneficiaries.
You have already worked for a Desjardins Group employer in the past and were a Desjardins Group Pension Plan member. You have now returned to a Desjardins employer and will re-join the DGPP.
One of the following will apply to your situation:
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• When you left Desjardins, you transferred the value of your entitlements into a locked-in retirement account or into your new employer’s pension plan.
-
• When you left Desjardins, you chose a deferred pension, i.e. to leave your entitlements in the DGPP. The DGPP will take this into account in your new membership, but only if you become a member again within 6 months following the end of your active membership date shown on the termination statement (more than 90 days if the termination was prior to January 1, 2020). Otherwise, you will be considered as a new DGPP participant. Hence, your credited service and salaries in your second participation will not be considered in the calculation of your pension from your previous participation and vice-versa.