Update on the Plan's financial position

July 6, 2020

The COVID-19 pandemic has had major repercussions on many sectors of activity. Now a few months into the crisis, we're proud to see that—despite increased stock market volatility and a general decrease in interest rates— the Desjardins Group Pension Plan (DGPP) remains very stable and is holding out against the pressures observed. This is largely due to the investment strategies put in place over the last years and our new overall financial management approach.

In the wake of the 2008 financial crisis, we had to adopt an innovative yet prudent and responsible approach to financially managing the DGPP. Our asset allocation strategy was designed to ensure the pension plan could absorb significant economic fluctuations. Diversifying the portfolio through bonds, equity, infrastructure and real estate contributes a great deal to the DGPP's resilience. Today, we can see that our actions continue to pay off.

The DGPP, a defined benefit pension plan

Now, more than ever, the current crisis is an opportunity to remind all participants that the DGPP is a defined benefit pension plan. The main advantage of this type of plan is the security and peace of mind it offers its participants. It pays benefits based on a pension formula that takes into account factors such as years of service and salary percentages. The amount paid out through the DGPP is determined ahead of time, no matter how the financial markets move.

The main priorities of the DGPP are designed for the long term but you can rest assured that DGPP's risk and investment experts monitor the impact of the crisis every day. Please feel free to contact the DGPP Member Services advisors; they will be happy to answer your questions.

To learn more about how the DGPP was financially managed last year, read the 2019 DGPP Annual Report. Also, your annual statement for the year ending December 31, 2019, is now available in your secure file of the DGPP.

Sylvain Gareau
Desjardins Group Pension Plan Division

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