The DGPP pension is a lifetime pension. That means you'll receive it throughout your retirement, for as long as you live.
Your retirement pension is calculated based on 3 key elements according to a predetermined formula. It involves a percentage multiplied by your highest average career salaries and the number of years you have participated in the plan.
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Average salary of
the best-paid years | |
Number of credited years of service |
Pension calculation
| Pension payable
|
For the participation
| Pension credit1 |
| Average salary
|
| Years of participation
|
| Sum of the 3 périods, if applicable
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Before 2009
| 1.3% / 2%
| X
| Best 5 years
| X
| Number of credited years of service before 2009
| =
| Pension payable at age 65 (A)
|
2009 à 2012
| 1.5% / 2%
| X
| Best 5 years
| X
| Number of credited years of service from 2009 à 2012
| =
| Pension payable at age 65 (B)
|
From 2013
| 1.5% / 2%
| X
| Best 8 years
| X
| Number of credited years of service from 2013
|
=
| Pension payable at age 65 (C)
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Total annual DGPP 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 Amount before deduction of income tax, plus Quebec Pension Plan or Canada Pension Plan retirement pensions, Canada Old Age Security pension and other retirement income. The DGPP pension payable cannot be greater than the maximum for tax purposes.
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Use the pension simulator to estimate your DGPP pension at different retirement dates.
You will see the pension options that could be offered to you. Temporary pensions providing an advance on your retirement income between ages 55 and 65 may be available.
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Calculation of the pension and illustration of the potential financial benefits of the Plan
| Mike, 33 years old, has started his career at Desjardins. Father of two young children, he shares his passion for outdoor sports with them.
Although retirement is still far, he wonders about the income he will derive from his participation in the DGPP. He wishes to retire at age 61 to continue enjoying moments in nature with peace of mind, perhaps with his grandchildren.
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• With an annual salary of $75,000, he contributes just over $4,000 per year to the DGPP.
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• If he stays with the organization and retires at 61, he will have contributed approximately $150,000 in total.
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• As a result of his participation in the DGPP, Mike could receive an annual lifetime pension of about $50,000.
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• Over a 30-year retirement, that amounts to nearly $1,500,000 paid out by the DGPP.
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An impressive return on investment
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• About 10 times the amount of his contributions
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• About 5 times more than if he had invested the contributions himself
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Key takeaway
Even starting today, the DGPP offers financial security that’s hard to match. It’s a
powerful investment in your future, with tangible and lasting benefits.
These figures are approximate and for indicative purposes only.
The calculation is based on the assumptions of a 2% annual increase in salary and MPE, as well as an average investment return of 4.15%.
For new participants, the following table presents examples of pension calculation for retirement at age 65 based on the starting salary and the number of years of participation.
If you are already a participant, refer to the
pension simulator to estimate your DGPP pension at different retirement dates.
Starting salary
|
Number of years of participation
|
10 years
|
20 years
|
30 years
|
$30,000
| $5,020
| $12,250
| $22,390
|
$40,000
| $6,700
| $16,330
| $29,860
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$50,000
| $8,370
| $20,410
| $37,320
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$60,000
| $10,050
| $24,490
| $44,780
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$80,000
| $13,760
| $33,550
| $61,350
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$100,000
| $18,230
| $44,440
| $81,260
|
$120,000
| $22,690
| $55,320
| $101,160
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These figures are approximate and for indicative purposes only. The calculation is based on the assumptions of a 2% annual increase in salary and MPE.