OTPP - Your 2010 pension increase is 0.5%

Your 2010 pension increase is 0.5%

The annual cost-of-living adjustment for 2010 is 0.5%. The increase, which takes effect in January, will increase a typical $36,000 annual pension by $180.

Since 1976 — the year in which automatic indexing was introduced — the annual pension increase has averaged 4.4%. Over the last decade, inflation has been historically low, resulting in modest increases.

The plan caps annual increases at 8%. However, in the past 10 years, the highest increase was 3.3% (2004).

So what happens if inflation falls below zero?

If we have a year of negative inflation, pensions would remain at their current levels and the percentage below zero would be carried forward to a year in which inflation is positive.

Annual increases at a glance

Last 10 years	Inflation Adjustment (%)
2001	2.5
2002	3.0
2003	1.6
2004	3.3
2005	1.7
2006	2.2
2007	2.3
2008	1.8
2009	2.5
2010	0.5

Details coming in January

If you're registered for iAccess Web, the secure members-only section of this website, you can see exactly how much your pension has increased as a result of the cost-of-living adjustment. We will post the latest increase on your personal web pages in late January.

If you're not registered for iAccess Web, or if you have chosen to receive paper communications from us, details will appear on your January payment slip.

The following chart shows how the 2010 inflation adjustment will affect different pension amounts.

Annual Pension	Increase in 2010
$15,000	$75
$20,000	$100
$25,000	$125
$30,000	$150
$35,000	$175
$40,000	$200
$45,000	$225
$50,000	$250
$55,000	$275
$60,000	$300

Did you retire in 2009?

If you retired this year, your inflation adjustment will be prorated to the number of months after you stopped working.

For example, if you retired in June, your inflation adjustment will be 0.25%, or half of 0.5%, in 2010.

Posted December 2009