Desjardins Group Pension Plan and your RRSP

​​What is the relationship between the Desjardins Group Pension Plan (DGPP) and my RRSP contribution? ​​

The DGPP is a registered pension plan, more specifically a defined benefit pension plan​.​​

On your T4 tax slip, you will find the pension adjustment (PA) which represents the pension accumulated in the DGPP for a given year. The pension adjustment reduces the maximum amount you can contribute to an RRSP for the following year.​

Pension adjustments​ make sure that all employees at similar income levels will have access to comparable tax-assisted retirement savings, regardless of what type of retirement savings plan they belong to. ​

The following table shows an example of how the 2024 RRSP deduction limit is calculated for an employee whose total income for 2023 is their Desjardins salary of $65,000. ​
Example: 2024 contribution room​
Unused RRSP contribution room carried over from 2023​​
​​ Plus​​: 18% of income earned in 2023 up to $30,780 (18% X $65,000 for example)
​Minus: PA for 2023 (9 X 2023​ DGPP credited pension​ – 600) - $8,175
Contribution room for 2024 $3,525​
​RRSP deduction limit for 2024​​