Pension Life - Winter 2020

Pensions increase in 2020

Pensions increase in 2020

Looking to 2020 and beyond, we want to show you how the Public Service Pension Plan is an example of pension governance done right. Your plan is well funded, fair and sustainable, and you can have confidence it will be here for you now and into the future.

Inflation adjustments help to protect the value of your pension as the cost of living rises over time. While inflation adjustments are not guaranteed, once they are granted, they become part of your lifetime pension. All retired members will receive an inflation adjustment of 1.9 per cent to their monthly pensions effective January 1, 2020. This increase to your monthly pension payment is based on the annual change in the 12-month average of the Canadian consumer price index. If you retired partway through 2019, your adjustment will be pro-rated based on the number of months in 2019 you received a pension.

Starting October 1, 2019, retired members who earned service between April 1, 2006 and March 31, 2018, became eligible to receive a past service pension improvement. You will see an increase to your pension if

  • you earned service between April 1, 2006 and March 31, 2018,
  • and you are age 65 or older.

Lastly, the next valuation of the plan will be as at March 31, 2020. A valuation occurs at least once every three years to determine the financial position of the plan and the future contribution rates needed to ensure its long-term funding. The last valuation determined the plan was 108 per cent funded. The next valuation report will be posted on the plan website at the end of December 2020.

Bar chart - Basic pension plus inflation adjustment granted