Early retirement reduction
Percent of reduction applicable to an annuity payable at normal retirement age. For example, the percentage of adjustment applicable on the portion of the pension payable at age 65, for the years of membership credited before 2009, for a 58-year-old employee with 26 years of continuous service, is 3% according to the following table.
For years from 2009, the pension is reduced by 4% per year for years missing between your age at retirement and age 62.
For service starting from 2009
|
Age upon termination of
employment
| 65
| 64
| 63
| 62
| 61
| 60
| 59
| 58
| 57
| 56
| 55
|
Reduction of the pension
amount | 0 | 0
| 0
| 0
| -4%
| -8%
| -12%
| -16%
| -20%
| -24%
| -28%
|
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.
Locked-in
The inability to fully withdraw money from a retirement plan, a LIRA or an LIF since the money is intended to provide retirement income.
Locked-in Retirement Account (LIRA)
In general, a LIRA is a savings account set up according to a written agreement between an individual and a financial institution authorized for that purpose, in order to accept and invest lump sums from a registered pension plan (RPP), until they are converted to a Life Income Fund (LIF) or a life annuity or transferred to another RPP. From a tax point of view, this agreement must meet the registration requirements for RRSPs as well as the rules specific to LIRAs and locked-in RRSPs. A LIRA is a product created by the Québec Supplemental Pension Plans Act (SPP Act). It is related to the locked-in RRSP governed by the federal Pension Benefits Standards Act (PBS Act).t
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.
Maximum Pensionable Earnings (MPE)
The MPE is the maximum annual salary on which a member contributes to either the Quebec Pension Plan (QPP) or the Canada Pension Plan (CPP). It generally varies each year.
In 2025, the MPE is $71,300.
|
Reference table for the main percentages associated with MPE |
MPE percentage
|
Corresponding amount
|
20%
|
$14,260
|
35%
|
$24,955
|
40%
|
$28,520
|
65%
|
$46,345
|
Maximum Pensionable Earnings of the last 5 years (MPE5)
The MPE5 represents the average of the last 5 years' Maximum Pensionable Earnings under the Quebec Pension Plan (QPP) for Quebec members, and under the Canada Pension Plan (CPP) for other provinces.
In 2025, the MPE5 is $66,580.
Plan assets
All financial securities held by the retirement fund.
Retirement fund
Fund where contributions are deposited in order to pay retirement benefits and other benefits promised to members under the plan.
Spouse (for the purposes of the DGPP)
Important notes:
- The definition of “spouse” is not the same in the Desjardins Group Pension Plan (DGPP) and the Group Insurance Plan.
For DGPP members outside of Quebec, the provisions of the applicable provincial legislation take precedence over the Plan Regulation and may differ from those presented below.
The summary definition of a spouse for members living in Quebec for the purposes of the Desjardins Group Pension Plan (DGPP) is as follows:
The spouse is the person who is married to or united in civil union with the member and who is not legally separated from bed and board from the member.
If the member is neither married nor civilly united, the spouse is a person who has been living with the member in a marital relationship for at least 3 years or, in the following cases, for at least 1 year
- at least one child has been born or will be born of their union;
- they have jointly adopted at least one child during their marital relationship;
- one of them has adopted at least one of the other’s children during this period.
If no one meets any of the above definitions, the spouse is a person whom the member has
designated in writing to the Desjardins Group Retirement Committee, and who has been living in a marital relationship with the member for at least 1 year.
Finally, if no one meets any of the above definitions, the member is deemed not to have a spouse for the purposes of the DGPP.
Supplemental Pension Plans Act (SPP Act)
The Supplemental Pension Plans Act governs the additional retirement plans of which private and municipal sector workers in Québec are members, as well as certain public sector plans. The Act is administered by Retraite Québec.
Tax withholding on refunds
All refunds in cash are subject to tax withholding in case of termination of participation. The applicable taxes withheld vary according to the amount of the refund as outlined in the following table. The exact amount of taxes payable will be determined when filing your income tax return for the year of the refund.
For participants living in the province of Québec:
|
Amount Refunded |
Provincial Tax |
Federal Tax
| Total Tax
|
$5,000$ and less
| 14%
| 5%
| 19%
|
Over $5,000 and up to $15,000
| 19%
| 10%
| 29%
|
Over $15,000
| 19%
| 15%
| 34%
|
For participants living elsewhere in Canada:
Amount Refunded
|
Tax |
$5,000 and less
| 10%
|
Over $5,000 and up to $15,000
| 20%
|
Over $15,000
| 30%
|
Please note that, for service from 2009, your contributions with accumulated interest provide a benefit of at least 175% in case of reimbursement of the value of your pension. If applicable, your entitlements are paid in proportion to the Plan's solvency ratio.