December 21, 2011

Every year, your monthly pension increases to help you maintain your purchasing power in retirement. For 2012, the base inflation adjustment has been set at 2.8%.

Ontario Teachers' Pension Plan, All Rights Reserved, 2011

Watch Teachers' Glen Tunney explain
the 2012 inflation adjustment,
the CPI basket and more.

This is the first year that you will be able to see the effect of conditional inflation protection (invoked at 60%) on your pension. How it affects you is dependent on a number of factors, including when you retired and how much post-2009 credit you have.

Did you retire before 2010?

If you retired before 2010, your pension will continue to receive 100% of the annual inflation adjustment.

Example:
A pensioner with a $51,000 pension will receive an additional $1,428 in 2012.

Did you retire in 2010?

If you retired in 2010, you will be affected but the impact will be minimal, because only a small portion of your credit would have been earned after 2009.

Ontario Teachers’ Pension Plan, All Rights Reserved, 2011

Watch a video that illustrates the inflation adjustment calculation.

Example:
A pensioner with 30 years of credit (and therefore 0.6 years of post-2009 credit, assuming a June 2010 retirement date) and a $51,000 pension will receive an additional $1,416 in 2012.

Did you retire in 2011?

If you retired in 2011, you will be affected but the impact will be minimal, because only a small portion of your credit would have been earned after 2009. In addition, your pension will be pro-rated to the number of months after you stopped working. For example, if you retired in June 2011, you will receive 50% of the inflation adjustment for six out of 12 months for 2011.

Example:
A pensioner with 30 years of credit (and therefore 1.6 years of post-2009 credit, assuming a June 2011 retirement date) and a $51,000 pension will receive an additional $676 in 2012.