Buyback of past service



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​​​What is a buy-back of past service and when can I buy back past service?

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

You may do a buy-back of past service at any time, but only prior to retirement. 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.

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 and its impact on your pension use the DGPP simulator via your secured file.