Pension indexing
Who is entitled to indexing and how long do we receive it?
Watch this video to discover the answer to this question and many others including how pensions increase with the cost of living every year and how the Canada Pension Plan/Quebec Pension Plan bridge benefits affect your monthly pension.
Transcript of the Pension indexing
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All pensions, including survivor benefits, that are payable under the public service pension plan are protected from inflation. Every January 1st and for the rest of your life, your pension will increase according to the cost of living. The increases are based on the Consumer price index which is determined by Statistics Canada.
In January of the year following your retirement, the indexing you will receive will be proportional to the number of full months left in the year you terminated employment. For example, if you retire in October, you would receive two-twelfths (for November and December) of the increase authorized for the following January. Afterwards, the full amount of indexing will be added to your pension every January.
As indexing is directly related to the amount of pension you receive under the public service pension plan, any adjustment to your pension will result in a corresponding adjustment in the indexing amount. For example, when the bridge benefit portion of your pension ends, the amount of indexing will be lower as it will be based on the lifetime pension only.
Becoming re-employed in the federal public service after you have retired may also affect your pension indexing. To learn more, you may view the “Re-employment after retirement” video.
For more information about pension indexing, please visit Your public service pension and benefits web portal at Pension and benefits or contact the Government of Canada Pension Centre.
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