Pension calculation

My pension amount

(7 min 50 s)

How is my pension calculated? 

The amount of your pension is determined according to the following formulas, based on the participation period.

Pension calculation							Pension payable
For the participation	Pension credit¹		Average salary		Years of participation		Sum of the 3 périods, if applicable
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)
Total annual DGPP pension							A + B+ C²

¹The 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.

²The DGPP pension payable cannot be greater than the maximum for tax purposes. 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.

Consult your personalized annual statement to know the amount of your accrued pension and see projections of your pension.

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.

Calculation of the pension and illustration of the potential financial benefits of the Plan

Example of Mike : retirement at age 61, starting salary of $68,000

Mike, 33 years old, has just been hired at Desjardins. Father of two young children, he shares his passion for outdoor sports with them.

Although retirement is still far away, 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.

Calculation of the amount the DGPP could pay Mike

With a salary of $68,000, Mike currently contributes $3,700 per year to the DGPP. It is estimated that at age 61, he will have contributed a total of $138,000. If he retires at age 61, it is estimated that he will receive an annual pension of $43,700 for his entire life.

Assuming a retirement duration of 30 years, he would receive an impressive amount of $1,370,000 from the DGPP. This represents 10 times his total contributions and 5 times what he would have accumulated by investing his contributions himself.

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%.

Other examples of pension calculation

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.

Examples of annual pension for retirement at age 65
Starting salary	Number of years of participation
Starting salary	10 years	20 years	30 years
$30,000	$5,020	$12,250	$22,390
$40,000	$6,700	$16,330	$29,860
$50,000	$8,370	$20,410	$37,320
$60,000	$10,050	$24,490	$44,780
$80,000	$13,760	$33,550	$61,350
$100,000	$18,230	$44,440	$81,260
$120,000	$22,690	$55,320	$101,160
$140,000	$27,160	$66,210	$121,060

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.

Desjardins Group Pension Plan

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Pension calculation

Example of Mike : retirement at age 61, starting salary of $68,000

Other examples of pension calculation