Your 2018 Inflation Adjustment
The annual cost-of-living adjustment for 2018 is 1.6%. The adjustment takes effect in January 2018.
The adjustment is based on 100% of the adjustment in the Consumer Price Index (CPI), a weighted basket of goods and services typically purchased by Canadian households each month.
The method used to calculate the adjustment is prescribed by the terms of the plan and is the same method used by most other major Ontario pension plans, as well as the Canada Pension Plan.
In March 2017, the partners announced a preliminary $11.5 billion funding surplus. Some of this surplus is being used to fully restore cost-of-living increases for the portion of pensions earned after 2009. Here's what this change means for your 2018 inflation increase:
- In January 2018, you’ll receive a pension increase equal to 100% of the annual CPI increase.
- If you retired after 2009, your pension will be restored to the level it would be at if 100% inflation protection had been provided on January 1, 2017.
- If you retire(d) in 2017, your first pension increase will be prorated from your last day of credit in 2017.