Indexing rate – Retired members – Pension
The indexing rate for 2024 is 4.8%.
The indexing of public service pension plan benefits is governed by two pieces of legislation; the Public Service Superannuation Act (PSSA) and the Supplementary Retirement Benefits Act (SRBA).
Pension increases for retired members and their survivors are calculated each year using Consumer Price Index (CPI) data published by Statistics Canada. In accordance with the SRBA, the increase is based on a comparison of the twelve-month average of the monthly CPI for the year just ended, to the twelve-month average of the monthly CPI for the previous year. The SRBA specifies that the twelve-month period from October 1 to September 30 is to be used to calculate the increase payable the following January. The index used for the calculation is the CPI for Canada for all items (not seasonally adjusted).
As an illustration, outlined below are the data used to calculate the 2024 pension increase.
| Month/Year | CPISee table 1 note * % | Month/Year | CPISee table 1 note * % |
|---|---|---|---|
Table 1 Notes
|
|||
| October 2021 | 143.9 | October 2022 | 153.8 |
| November 2021 | 144.2 | November 2022 | 154.0 |
| December 2021 | 144.0 | December 2022 | 153.1 |
| January 2022 | 145.3 | January 2023 | 153.9 |
| February 2022 | 146.8 | February 2023 | 154.5 |
| March 2022 | 148.9 | March 2023 | 155.3 |
| April 2022 | 149.8 | April 2023 | 156.4 |
| May 2022 | 151.9 | May 2023 | 157.0 |
| June 2022 | 152.9 | June 2023 | 157.2 |
| July 2022 | 153.1 | July 2023 | 158.1 |
| August 2022 | 152.6 | August 2023 | 158.7 |
| September 2022 | 152.7 | September 2023 | 158.5 |
| Total | 1,786.1 | Total | 1,870.5 |
| Monthly Average | 148.8 | Monthly Average | 155.9 |
The pension increase (indexing rate) for 2024 is the percentage increase in the monthly average CPI. This is calculated by subtracting the monthly average for the first period (October 2021 to September 2022) from the average for the second period (October 2022 to September 2023), then dividing this amount by the monthly average for the first period and finally multiplying it by 100, as follows:
155.9 − 148.8 = 7.1
(7.1 ÷ 148.8) × 100 = 4.8% (indexing rate for 2024)
It is important to note that the calculation of the increase payable each January does not include the monthly increases for the last three months of the previous year (October to December). These rates will be incorporated in the following year’s calculation.
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