Buyback of past service

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Past service buy-back concerns the Desjardins Group Pension Plan only. It does not concern the Group Insurance Plan.

Desjardins Group Pension Plan (DGPP) 

The past service buy-back is used to transform unrecognized years of service into the DGPP into credited service years, i.e. into years eligible for the calculation of your retirement pension. Past service buy-back for the purposes of the Desjardins Group Pension Plan (DGPP) is possible for the following periods or circumstances: 

It is important to note that past service buy-back does not entitle you to take your retirement earlier. The normal retirement age is still 65, but you can still take early retirement starting at age 55, with or without past service buy-back.

While on leave without pay (maternity or parental), you did not participate in the DGPP even though you were eligible

For the purposes of this plan, this period of leave without pay is recognized only to establish your years of continuous service, i.e. the years during which you were working for a Desjardins employer. In order to have this period recognized in the calculation of your retirement pension, it must be bought back.

The buyback cost depends on several variables, including your age, gender, current salary, continuous service and annuity rates. The DGPP uses these variables to calculate the amount of money needed today to be able to pay the estimated additional pension later on. The buyback cost does not take into account contributions that could have been made during the period in question or the salary that you earned at that time. The plan’s actuary periodically sets the factors for pension buy-back, based on all variables considered.

If you are eligible for a past service buy-back and you want to know its cost, as well as its impact on your pension and your tax situation, please click here to make your request.​

You were employed by Desjardins at age 24 and you were hired before 1990

Since 1998, eligible employees are entitled to buy back the year of service between their 24th and 25th birthdays. The plan subsidizes 30% of the total cost (maximum $2,000 for a full year).

Note that if you retire before age 65 (early retirement), an actuarial adjustment will be applied based on your age and years of continuous service, i.e. the years during which you were working for Desjardins employer. Buy-back of the year between your 24th and 25th birthdays has no impact on the adjustment percentage since this year is already recognized by the DGPP as a year of continuous service.

On the other hand, buy-back for this period will mean that it will also be recognized in calculating your retirement pension, thereby adding to the years of credited service already recognized.

You must meet all of the following conditions in order to be eligible for buy-back:

  • You were hired at Desjardins before age 25.
  • The year or years of service took place before January 1, 1990.
  • Between age 24 and 25 you worked as a regular employee (full or part time).
  • You were an active DGPP member as of October 14, 1998; if you were not active on that date, you can carry out the buyback but without obtaining the plan subsidy.
  • You were an active DGPP member on the past service buy-back.
  • The year being bought back was spent with a Desjardins employer that today is a participating DGPP member.

You can carry out the past service buy-back at any time before your retirement.

The buyback cost depends on several variables, including your age, gender, current salary and annuity rates. The DGPP uses these variables to calculate the amount of money needed today to be able to pay the estimated additional pension later on. The buyback cost does not take into account contributions that could have been made during the period in question or the salary that you earned at that time. The plan’s actuary periodically sets the factors factors for pension buy-back, based on all variables considered.

If you are eligible for a past service buy-back and you want to know the buy-back cost, as well as its impact on your pension and your tax situation, please click here to make your request.

When you were hired by Desjardins Group, you transferred the value of a pension from a previous employer’s pension plan and the DGPP did not recognize the total number of your years of service when calculating your pension

For the purposes of the plan, the years not recognized for calculating your pension are recognized as years of continuous service.

In order for these years to be recognized in the calculation of your retirement pension as well, they must be bought back.

The buyback cost depends on several variables, including your age, gender, current salary and annuity rates. The DGPP uses these variables to calculate the amount of money needed today to be able to pay the estimated additional pension later on. The buyback cost does not take into account contributions that could have been made during the period in question or the salary that you earned at that time. The plan’s actuary periodically sets the factors factors for pension buy-back, based on all variables considered.

If you are eligible for a past service buy-back and you want to know the buy-back cost, as well as its impact on your pension and your tax situation, please click here to make your request.