Indexing rate – Retired members – Pension

The indexing rate for 2021 is 1.0%.

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 2021 pension increase.

Monthly evolution of the Consumer Price Index (CPI)
Month/Year CPISee table 1 note * % Month/Year CPISee table 1 note * %

Table 1 Notes

Table Note *

Statistics Canada. Table 18-10-0004-01 Consumer Price Index, monthly, not seasonally adjusted

Return to table note * referrer

October 2018 134.1 October 2019 136.6
November 2018 133.5 November 2019 136.4
December 2018 133.4 December 2019 136.4
January 2019 133.6 January 2020 136.8
February 2019 134.5 February 2020 137.4
March 2019 135.4 March 2020 136.6
April 2019 136.0 April 2020 135.7
May 2019 136.6 May 2020 136.1
June 2019 136.3 June 2020 137.2
July 2019 137.0 July 2020 137.2
August 2019 136.8 August 2020 137.0
September 2019 136.2 September 2020 136.9
Total 1,623.4 Total 1,640.3
Monthly Average 135.3 Monthly Average 136.7

The pension increase (indexing rate) for 2021 is the percentage increase in the monthly average CPI. This is calculated by subtracting the monthly average for the first period (October 2018 to September 2019) from the average for the second period (October 2019 to September 2020), then dividing this amount by the monthly average for the first period and finally multiplying it by 100, as follows:

136.7 − 135.3 = 1.4

(1.4 ÷ 135.3) × 100 = 1.0% (indexing rate for 2021)

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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