Characteristics of my pension
The Desjardins Group Pension Plan, or DGPP, has several advantages. The form and flexibility of the pension paid to the retiree are good examples of these advantages.
First, the pension that will be paid to me is a lifetime pension, meaning that it will be paid to me at retirement and for the rest of my life.
Second, for service accumulated as at December 29, 2012, my pension will be indexed annually starting on the January 1 following my retirement to reflect increases in the cost of living. Indexing is equal to the increase in the consumer price index, up to an annual maximum of 3%. For service starting on December 30, 2012, my pension will be indexed annually as of the January 1 following the year in which I turn 65, for a period of 10 years, and according to the increase of the consumer price index, up to an annual maximum of 1%.
When employees retire, they can choose the pension coverage they would like to have in the event of their death. For employees that do not have a spouse when they retire, the plan provides for service accumulated as at December 29, 2012, a guaranteed period of 15 years. If the employee dies before the end of this 15-year period, his or her beneficiary receives, in a single payment, 100% of the pension that the employee would have been entitled to up to the end of this guaranteed period.
For service accumulated as at December 29, 2012, for employees who have a spouse when they retire, in the event of the employee's death, the spouse receives 60% of the pension that the employee had been receiving for the rest of his or her life.
For service accumulated starting on December 30, 2012, the plan will provide a 10-year guaranteed period at retirement regardless of whether or not the employee has a spouse. Therefore, if the employee dies before the end of this 10-year guaranteed period, his or her beneficiary receives, in a single payment, 100% of the pension that the employee would have been entitled to, up to the end of this guaranteed period.
There are several other options regarding the form of the pension and guarantees that would allow me to adapt my retirement income to my needs and those of my loved ones. For example, if I increase my pension before age 65 and decrease it afterward, this decrease could be partially offset by the QPP or CPP as well as the OAS. I will have a decision to make when I retire.
There's no doubt that the plan is flexible.
I am going to check out the website to make sure that I haven't missed anything. And if I need help, I'll call the Member Services Team.
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