On January 1, 2017, SPP retirees received an increase to their pension of 0.7%. This Cost of Living Adjustment (COLA) was 50% of the change in the Consumer Price Index (CPI).
What is a COLA?
When you retire, you receive a lifetime pension, and the pension may be increased on January 1st of each year if the Plan fund is able to afford it. COLA increases are based on the change in the CPI for the year. The amount of COLA is determined based on the funded status in the most recent actuarial valuation. Based on the actuarial valuation as at December 31, 2013, it was determined that the Plan could afford to continue to pay indexing of 50% of CPI from 2015 to 2017. The actuarial valuation as at December 31, 2016 will determine future COLA adjustments. For additional COLA information, please visit our Cost of Living Adjustment page.