Gradual retirement

Gradual retirement allows employees aged 55 or over to reduce their work hours through an agreement with their employer (Reference: DGPP Regulation, Section 8-13). In order to compensate for the loss of income, the member can request an annual lump sum payment from the Desjardins Group Pension Plan (DGPP), not to exceed the limit set by law. This amount must be taken into consideration at the actual time of retirement. The lump-sum payment is applicable only to Quebec’s members.

During the gradual retirement period, the employee’s contributions to the DGPP will be adjusted to the new work schedule according to the same terms as part-time employees.

To be eligible, employees must:

  • - Be 55 or over and under 71
  • - Sign a gradual retirement agreement with  the employer
  • - Reduce the number of working hours
  • - Have a planned date of retirement

You will find here a model agreement relative to gradual retirement.

If you have a current gradual retirement agreement and wish to receive a lump-sum amount from the DGPP, click here to make your request (applicable only to Quebec's members). Lump sum advances are only issued upon request and are limited to one per year.

Employees 65 years or over may receive their pension benefit from the DGPP while continuing to work

Section 4.4 of the DGPP Regulation stipulates that if you're 65 or over, you can start collecting your pension without termination of employment. Employees who choose this option no longer have to make DGPP contributions.