Financing Pension Plan Obligations

Cost Sharing

Between employees and employers

The annual cost of the Desjardins Group Pension Plan (DGPP) is made up of contributions for current service, administrative management fees and special contributions, as required. 

Members and employers take a proportionate share in the risk. The overall cost sharing objective is 65% for employers and 35% for members.

Among members

For the service as of July 3, 2016, the members contribution formula is 6.90% up to 65% of the yearly maximum pensionable earnings (YMPE) for the year and 10.30% of the excess. 

Financing
The financing must respect current legislation. 

Financing of future benefits (including fees and amortization of deficits) equals the sum of salary employee contributions and payment of 1.85 times this amount by the employers.

In addition to the contributions described previously, Desjardins Group could, in exceptional cases, inject money to speed up financing of the Plan's deficits. This cash advance will be subject to an annual review by the Federation Board of Directors, based on changes to the Plan's financial position. If the Plan shows a surplus, Desjardins Group will recover its cash advance, in compliance with applicable legislation, before the surplus is used for any other purpose. 

New DGPP funding policy
A new funding policy was developed to ensure compliance with the Regulation to amend the Regulation respecting supplemental pension plans that took effect January 4, 2018. The policy outlines:

• The main features of the employer and the employer's line of business in which it operates, the type of Plan and main Plan provisions, and demographic characteristics that could affect Plan funding
• The Plan's funding objectives with regards to benefit and contribution levels
• The Plan's main funding risks and employer/active participants tolerance for these risks