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