Your monthly pension payment may increase to reflect increases in the cost of living.
Your monthly pension payment may increase as a result of an annual cost-of-living adjustment (COLA). This adjustment may be added to your pension to help it keep pace with increases in the cost of living over time.
COLAs are not guaranteed. They are based on:
- Changes in the Canadian consumer price index (CPI) over a 12-month period from September to September
- The funds available in the plan's inflation adjustment account
Both active members and employers contribute to the inflation adjustment account. Each year, the Teachers' Pension Board of Trustees reviews any changes in CPI and the available funds in the inflation adjustment account. If the board grants a COLA, it will take effect in January.
In your first year of retirement, your COLA adjustment is pro-rated according to the number of months you’ve been retired.
Once a COLA is granted, it becomes part of your lifetime pension. The COLA is also applied to the bridge benefit and temporary annuity portion of your pension, if applicable.
See the most recent winter issue of Pension Life to find out if a COLA will be applied and, if so, its percentage. You can check your retired member pension statement to find out how the COLA may increase your monthly pension payment for the coming year.
Cost-of-living adjustment history