We’re happy to let you know that your monthly pension payment will be going up, thanks to this year’s cost of living adjustment (COLA).
Starting January 2026, your pension will increase by 2.0 per cent.
The annual COLA is applied to all pensions in pay, including survivor pensions, and to the deferred pensions of former and divested members. This helps to protect your pension against the impact of inflation and helps ensure it does not lose value over time.
How your annual adjustment is calculated
When COLA is calculated
Every January, pensions are adjusted for the increase in the cost of living, as measured by the consumer price index (CPI), reported by Statistics Canada.
Formula used to calculate
OPTrust’s annual COLA is calculated based on the change in the average monthly CPI between October and September for the previous two years. For example, the 2026 increase was calculated as follows
Maximum increase
The maximum increase in any single year is 8 per cent. Any increase above this level is carried forward and applied in the next year when the adjustment is less than 8 per cent.
Consumer price index
The consumer price index (CPI) is a measure produced by Statistics Canada that reflects the cost of a weighted basket of goods and services that are typically purchased by Canadian consumers every month. The CPI is widely used as an indicator of the change in the general level of consumer prices and the rate of inflation.
For more information on the consumer price index, visit the Statistics Canada website.
Lifetime protection
COLA is designed to protect the purchasing power of your pension during your lifetime. It’s one of the key benefits of your OPSEU Pension Plan.
For example, a retiree who started receiving their pension in January 1995, with an annual pension of $20,000, would receive $38,059 from OPTrust in 2026 - a 90 per cent increase over a 31-year period.
Since 1995, COLA has averaged 2.1 per cent per year.
To find out how much your pension will increase in 2026, view your Pensioner Information Change Statement, available through your secure Online Services account in early January.
New retirees
If you retired in 2025, your COLA is pro-rated for the length of time you received a pension.
For example, if you retired in June 2025, your pro-rated COLA is calculated using the number of months you received a pension, divided by 12, multiplied by the 2026 increase.
6 ÷ 12 x 2.0% = 1.0%
In January 2026, your pension would increase by 1.0 per cent to reflect the cost of living for six months. In following years, COLA granted will not be pro-rated.
Frequently asked questions (FAQs)
Your pension is increasing due to the annual cost of living adjustment (COLA), which helps your retirement income keep pace with inflation. It is one of the key benefits of your defined benefit plan, the OPSEU Pension Plan.
Your pension is increasing due to the annual cost of living adjustment (COLA), which helps your retirement income keep pace with inflation. It is one of the key benefits of your defined benefit plan, the OPSEU Pension Plan.
The COLA adjustment is 2.0%, effective January 1, 2026. You’ll see the new amount in your January pension payment.
The COLA adjustment is 2.0%, effective January 1, 2026. You’ll see the new amount in your January pension payment.
The new amount will be reflected in your pension deposit starting in January 2026.
The new amount will be reflected in your pension deposit starting in January 2026.
COLA is based on inflation data from Statistics Canada and follows the calculation methodology set out in the Plan terms and agreed to by the Plan sponsors.
COLA is based on inflation data from Statistics Canada and follows the calculation methodology set out in the Plan terms and agreed to by the Plan sponsors.
The COLA adjustment is taxable income. Members should consult a financial advisor for personal implications.
The COLA adjustment is taxable income. Members should consult a financial advisor for personal implications.