Financial position

​The Plan is resilient

In 2022, the DGPP proved to be resilient in a context of high volatility, market downturn and interest rate hikes. The DGPP remains wellpositioned financially despite the challenging economic context.

Our strategies, based on diligent risk management, paid off. Higher interest rates resulted in lower liabilities for the Plan, which offset a good portion of the drop in assets seen in the year.

The funding ratio remained excellent despite a slight decrease during the year from 122% to 119%. This remains well above the stabilization target of 113% required under Quebec legislation for the DGPP.

Additionally, the DGPP finished 2022 with a solvency ratio that nearly achieved equilibrium at 97%. This ratio determines the level of reimbursement of the value of the benefits, should they be transferred if membership ceases or if the Plan is terminated. We are not required to fund the Plan on a solvency basis, however.

Funding is adequate

The DGPP’s financial strength allowed us to reduce the contribution rate by 1.0% beginning in 2023 while maintaining the same benefits. This decision stems from a responsible, prudent and long-term oriented management approach. This change is the result of the sustained financial efforts of Plan members and employers, combined with the rigorous application of innovative strategies to ensure that the DGPP is stable and sustainable.

In 2023, based on the prescribed formula, employers and employees should contribute a total of $800 million to the Plan. These contributions will help the Plan fulfill its commitments while maintaining a sufficient financial cushion.


The various types of actuarial valuation

Valuation on the going concern and solvency basis

       Requirement by the regulatory (Retraite Québec) and fiscal (Canada Revenue Agency) authorities.

       Payment, in trust, on behalf of the salary and employer contribution plan to finance benefits pursuant 

       to these valuations only. 

Valuation on the going concern basis

       According to this scenario, the Plan will last over time.

      The actuarial scenarios used are aimed at maintaining a constant level of employee and employer  

      contributions in terms of percentage of salary.

      The annual interest rate used is constant. 

Valuation on the solvency basis

      The Plan will end at the valuation date, according to this scenario. All employees will end their

      employment. No scenario for salary increases is used.

      The scenarios used are prescribed by law and reproduce the market scenarios (purchase of insured


Valuation on the accounting basis [Canadian Institute of Chartered Accountants (CICA), chapter 3461]

      Production for employers’ financial statements.

      Use of the scenarios prescribed by the CICA (Canadian Institute of Chartered Accountants), even if

      produced by an actuary.

      Recognition of retirement costs that, in the long term, will be aligned with the required contributions in

      the valuation on the going concern basis.

      Valuation on a continuity basis.