September 14, 2016 — Inflation protection for pension credit earned after 2009 is increasing to 90% from 70% of the annual increase in the cost of living. Teachers who retired after 2009 will see this increase reflected in their pensions in January 2017.
The Ontario Teachers' Federation (OTF) and the Ontario government, which jointly sponsor the Ontario Teachers' Pension Plan, are using some of the $13.2 billion funding surplus reported in March to restore inflation increases. Some surplus funds will also be reserved to help facilitate stability in contribution and benefit levels should a future funding valuation show a decline in assets or increase in pension costs.
Members who retired before 2010 are unaffected by the change because they receive 100% inflation protection. Members who are still working are not currently affected because inflation increases are determined after retirement.
For more information, read Surplus funds will help increase inflation protection for post-2009 pension credit.