On an annual basis, your monthly TPP pension payment may increase as a result of a cost-of-living adjustment (COLA) each July 1st.
COLA is calculated as a percentage of the increase in the Canadian Consumer Price Index (CPI). The increase in the CPI is calculated as the average CPI for the 12 months ending April 30 of the preceding year over the average CPI for the 12 months prior to that period.
The TPP has 2 types of COLA, Variable and CPI -1%. Your retirement date determines which type of COLA you could receive. These details are below.
Variable COLA (If you retired on or after August 1, 2006 or retired before August 1, 2006 and elected this COLA type)
Variable COLA is based on the Plan’s funded status at year end December 31 of the previous year.
2022 Variable COLA notification:
As at December 31, 2021, the TPP achieved a positive return on investments of 9.63%, net of investment management fees, and Plan assets were $5.856 billion. The Plan’s funded ratio was 82.5%.
While the Plan’s investment performance was positive at year end 2021, the Plan’s funded status remains less than 90%, at 82.5%. Therefore, retirees and beneficiaries eligible for a Variable Cost-of-Living Adjustment will not receive an increase in their pension in 2022.
Download a pdf. version of the 2022 Variable COLA notification here:
CPI minus 1% COLA (If you retired before August 1, 2006)
If you retired before August 1, 2006, COLA can be granted when the increase in the CPI is greater than 1%.
2022 CPI-1% COLA notification:
The increase in the average CPI for the 12 months ending April 30, 2022 was 4.8%. Therefore, effective July 1, 2022, a 3.8% Cost-of-Living Adjustment will be added to your monthly TPP pension.
Your TPP Cost-of-Living Adjustment amount was calculated as follows:
|Increase in the average CPI||4.8%|
|Minus 1.0% as prescribed by the formula||-1.0%|
|Cost of Living Adjustment||3.8%|
The increase in the average CPI for the 12 months ending April 30, 2022 calculation:
The average CPI for 12 months ending April 2022 = 144.4
The average CPI for 12 months ending April 2021 = 137.8
144.4 – 137.8 = 6.6
6.6 / 137.8 = 4.8% (the increase in the average CPI)
Download a pdf. version of the 2022 CPI-1% COLA notification here
CPI minus 1% COLA history:
2022 = 3.8%
2021 = 0.0%
2020 = 0.9%
2019 = 1.1%
2018 = 0.6%
What is the Consumer Price Index (CPI)?
CPI is an indicator of changes in consumer prices experienced by Canadians. It is obtained by comparing, over time, the cost of a fixed basket of goods and services purchased by consumers. It is published monthly by Statistics Canada. Changes in the CPI are the most common measure of inflation.
For more information on the CPI, please visit the Statistics Canada website at www.statcan.gc.ca