Currently, every January your pension or the pension of your survivor is adjusted for the increase in the cost of living. The adjustment is applied in January of the year after you start to receive a pension. The first adjustment is pro-rated for the length of time you received a pension in the previous year. The inflation adjustment reflects the increase in the cost of living in Canada (as measured by the change in the Consumer Price Index [CPI]) over two 12-month periods ending the preceding September.
The maximum increase in any one year is 8%. Any increase above 8% is rolled forward into the next year, to be used when the adjustment is less than 8%.
This chart shows how the inflation protection feature of the OPSEU Pension Plan works. The graph plots the growth of an average pension (that started at $29,800) over the 10-year period from 2007 – 2016.