Indexing rate – Retired members – Pension
The indexing rate effective January 1, 2025, is 2.7%.
Indexation
The indexing of public service pension plan benefits is governed by two pieces of legislation; the Public Service Superannuation Act and the Supplementary Retirement Benefits Act.
Indexation ensures that your pension will be protected from losing its value because of inflation or increases in the cost of living.
Rate calculation
Consumer Price Index (CPI) data published by Statistics Canada is used each year to calculate pension increases for retired members and their survivors. The index used for the calculation is the CPI for Canada for all items (not seasonally adjusted).
The increase for 2025 is calculated by completing the following 2 steps:
Step | Calculation instructions | Calculation |
---|---|---|
1. | Subtract the monthly average for the first 12-month period (October 2022 to September 2023) from the monthly average for the second 12-month period (October 2023 to September 2024). | 160.1 – 155.9 = 4.2 |
2. | Divide the result by the monthly average for the first period and multiply it by 100. | (4.2 ÷ 155.9) x 100 = 2.7% |
Note: The calculation 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.
The following data were used to calculate the 2025 pension increase.
Month/Year | CPISee table 1 note * % | Month/Year | CPISee table 1 note * % |
---|---|---|---|
Table 1 Notes
|
|||
October 2022 | 153.8 | October 2023 | 158.6 |
November 2022 | 154.0 | November 2023 | 158.8 |
December 2022 | 153.1 | December 2023 | 158.3 |
January 2023 | 153.9 | January 2024 | 158.3 |
February 2023 | 154.5 | February 2024 | 158.8 |
March 2023 | 155.3 | March 2024 | 159.8 |
April 2023 | 156.4 | April 2024 | 160.6 |
May 2023 | 157.0 | May 2024 | 161.5 |
June 2023 | 157.2 | June 2024 | 161.4 |
July 2023 | 158.1 | July 2024 | 162.1 |
August 2023 | 158.7 | August 2024 | 161.8 |
September 2023 | 158.5 | September 2024 | 161.1 |
Total | 1,870.5 | Total | 1,921.1 |
Monthly Average | 155.9 | Monthly Average | 160.1 |
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