NEW! January 1, 2023 As of January 1, 2023 the rate of indexation that applies to your pension benefit, based on the percentage increase in the CPI (Consumer Price Index) from October 1, 2021 to September 30, 2022, is 5.33%. The full indexation will apply to those retired for the whole period of twelve months preceding, while new pensioners who started their pension during 2020 will receive a percentage increase proportional to the number of months they received benefits.
Pension Indexation Formula
Every January, if you are a member of the University of Ottawa Pension Plan, your pension will be automatically adjusted to reflect some or all of the increase in the Consumer Price Index (CPI), beginning in the year after your retirement. The pension indexation formula is based on the increase in the CPI during the period of October 1 and September 30th of the previous year, up to a maximum increase of 8%.
- If the increase in the CPI is less than 2%, the adjustment will be equal to the percentage increase in the CPI.
- If it is between 2% and 3%, you will receive a 2% increase.
- If the increase in the CPI is greater than 3%, your pension increase will be 1% less than the CPI.
Any portion of the increase in the CPI not granted will be automatically given if the performance of the Pension Fund exceeds specified criteria. It may also be awarded on an ad hoc basis by the Board of Governors, depending on the status of the Pension Fund.
Any increase in the CPI above 8% will be applied to the pension in a later year when the adjustment is less than 8%. The increase in your pension on the first of January after you retire will be based on the number of complete months remaining in the calendar year after your retirement.
Pension Indexations in the past
The following table lists pension indexation figures since 2002. The table indicates that currently there is only one year, namely 2022, in which full indexation has not as yet been fully granted.
*Whether or not catch-up indexation awards are made is subject to the pension fund meeting certain performance criteria. Pension fund performance is evaluated annually in light of these criteria, and if they are met, indexations not previously granted are made, upon recommendation of the Pension Plan Committee and approval of the Board of Governors.
Date of Indexation (1 Jan.)
|Previous Year CPI (in %)||Automatic indexation given (in %)||Percentage not immediately given||Year when catch-up granted (see note* above)|