Characteristics of the Pension Plan

​​​​​​Desjardins Group (DG) Pension, payable at age 65

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My pension amount

​​(7 min 50 s)
​​​How is my pension calculated?

At the normal retirement age of 65, your pension will be calculated as follows:



Pension calculation

​Pension payable

Years of service
​Pension credit 1

Average salary

​(Sum of 3 periods)
Before 2009 Credited years X​
​1.3% / 2%
X​
Best 5 years
=​
DG pension payable at age 65 (A)
2009 to 29-12-2012 Credited years
X​ 1.5% / 2%​ X​
Best 5 years =​
DG pension payable at age 65 (B)
Starting 30-12-2012 Credited years
X​
1.5% / 2%
​X
Best 8 years =​
DG pension payable at age 65 (C)
Total pension paid by the plan, on top of the QPP/CPP pension:

​A + B + C 2
¹ The pension credit gives a percentage (1.3% or 1.5%) of average salary up to average maximum pensionable earnings (MPE5) (MPE5 is $61,840 in 2023) and 2% of average salary exceeding average MPE5.
² The DGPP pension payable cannot be greater than the maximum for tax purposes​.

Contribution rates
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My contributions to the DGPP

​​(1 min 13 s)
​​​What is the DGPP contribution rate?
How are contributions split between my employer and myself?

  • Up until December 24, 2022, the contribution rate is:
    6.90% on pensionable earnings up to 65% MPE + 10.30% on exceeding amount.

    Starting on pay period beginning on December 25, 2022, the contribution rate is:
    5.90% on pensionable earnings up to 65% MPE + 9.30% on exceeding amount.


Early retirement

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Retirement age

​​(1 min 09 s)
​​​​At what age can I retire? 

  • Possible starting at age 55.
  • For years up to December 31, 2008, the actuarial adjustment varies by age and years of continuous service. No adjustment if you retire at age 57 or over and the sum of your age and years of continuous service adds up to 85.
  • For years after January 1, 2009, the adjustment is 4% per year for years missing between your age at retirement and age 62. 


Postponed retirement 

  • At the latest, the last day of the calendar year you reach age 71.


Normal pension characteristics

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My pension characteristics

​​(2 min 49 s)
​​​​​​​When the time comes to receive my pension, will I have certain choices to make? 

For the years up to December 29, 2012:

  • With a spouse upon your retirement: Life annuity, guaranteed 10 years, reduced to 60% and payable to spouse when retiree dies.
  • Without a spouse upon your retirement: Life annuity, guaranteed 15 years.

For the years as of December 30, 2012:

  • With or without a spouse upon your retirement: Life annuity, guaranteed 10 years.


Indexation

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My pension characteristics

​​(2 min 49 s)
​​​​​​​When the time comes to receive my pension, will I have certain choices to make? 


Upon retirement

For the years up to December 29, 2012:

  • Annual indexation as of January 1 following retirement, based on the CPI, up to a maximum of 3% per year.

For the years as of December 30, 2012:

  • Indexation as of January 1 from age 65, based on the CPI, up to a maximum of 1% over a fixed period of 10 full years (increase applied on a pro-rata basis on the first and last year of indexation).

Deferred annuity:

  • Annual indexation up to 55 years of age, according to 50% of the CPI up to a maximum of 2%. However, for service starting on December 30, 2012, a pro-rated amount will apply to first and last year of indexation.​


Termination
  • Deferred pension in the DGPP or value of the vested pension (transferable to a LIRA or another retirement plan if the employee is under age 55).


Death                           

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Death

​​(0 min 59 s)
​​​What happens to my pension if I die before or during retirement?


  • Before retirement: Value of the vested pension.
  • After retirement: Depends on the features of the annuity chosen at retirement.