When you leave Desjardins Group, your employer will indicate an employment termination in your file. This information will be sent to the DGPP. The required documents, if needed, will be produced automatically and will be issued generally within 6 to 8 weeks following your employment termination.
Desjardins Group Pension Plan (DGPP)
I’m leaving Desjardins Group
If you are over 55, you are eligible for a retirement pension. You may ask for it immediately or no later than your 65th birthday.
If you are less than 55, you have two options:
Option A: Leave your vested pension in the DGPP
Leave your vested pension in the Desjardins Group Pension Plan (DGPP).
You choose to leave your vested pension in the DGPP, making it a deferred pension. You may ask to receive this pension as of age 55. It will be reduced. However, it is mandatory to start receiving your pension at normal age of retirement, which is 65 years old.
“Excess contributions” can also be added to your retirement pension. What are excess contributions? Excess contributions are the result of a calculation required by law to ensure that your vested pension is at least 50% financed by your employer’s contributions. This means that if your cumulative contributions with interest represent more than 50% of the value of your pension, the difference is added to your entitlements as excess contributions.
Note that this option will be offered only if the value of your vested pension is higher than 20% of the Maximum Pensionable Earnings (MPE) under the QPP. If not, only the Option B described below will be offered. If you want to know the estimative value of your vested pension, you must refer to your annual statement on page « My file » of the DGPP secure site.
Option B: Transfer the value of your vested pension out of the DGPPSince January 1, 2017, for Quebec employees, pension value payment is made according to the solvency ratio, without exceeding 100%. However, the full pension value will be paid if the value is lower than 20% of the MPE ($11,740 in 2020).
NOTE: In the context of the COVID-19 outbreak, Retraite Québec have implemented a temporary measure to determine which solvency ratio must be taken into account on pension value payments for defined benefit pension plans. Therefore, all payments between April 20th and December 31, 2020 must take into account the solvency ratio updated on the last working day of the month preceding the date on which the value of the DGPP member's benefits was determined.
|DGPP solvency ratio|
|As at April 30, 2020||90.3%|
|As at March 31, 2020||80.8%|
This privilege may be exercised at the moment of termination or later on, but it is mandatory before age 55. The reimbursement/transfer options presented on your termination of participation statement are according with the value of your vested pension. For more information, please contact the DGPP Member Services Team.
- Reimbursement of the value of the vested pension if t. Income tax will be deducted.
- Transfer the value of your vested pension to a locked-in retirement account (LIRA).
- Transfer of the value of the vested pension to a Registered Retirement Savings Plan (RRSP).
The value of your pension may be transferred to your new employer’s pension plan if the new employer agrees. To learn more on the subject, please contact the DGPP Member Services Team.
The value of your pension is a sum of money which, when invested at a fixed and guaranteed interest rate, would be enough to procure your annual vested pension starting at age 55 – reduced, as the case may be – and throughout your entire life. For service as of January 1, 2009, the value of the deferred pension may not be lower than 175% of the contributions you have paid into the DGPP. If you want to know the estimative value of your vested pension, you must refer to your annual statement on page « My file » of the DGPP secure site.
Specification about the transfer to a LIRA:The Canada Revenue Agency (CRA) limits the amounts that can be transferred into a LIRA. If the value of your pension is higher than the limit set by the CRA, the amount that cannot be transferred to your LIRA will be paid back to you (income tax will be withheld). If you are 50 or less, the maximum pension value that can be transferred corresponds to your pension amount multiplied by 9. If you are between 50 and 55, this value increases gradually to reach 10.4 at age 55.
You can also access My Health Is Cool 360° from the Desjardins Insurance secure site.