Cost-of-Living Adjustment

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 increases for retired members and their survivors are calculated each year using Consumer Price Index (CPI) data published by Statistics Canada. To determine CPI, Statistics Canada measures monthly changes in the cost of living by examining the price of a basket of consumer goods and services typically purchased by Canadian households and compares the ups and downs to previous months. To calculate COLA, TPP uses 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 TPP’s funded status at year end December 31 of the previous year and can only be granted when the Plan is fully funded (100% or more) or is at least 90% funded.

2024 Variable COLA:

At December 31, 2023, the Plan was 78.1% funded on a going-concern basis. This represents an increase over 2022’s funded ratio of 75.1 per cent. The Plan’s deficit was $1.617 billion, being the difference between the net assets available for payment of benefits of $5.759 billion and the pension liabilities of $7.376 billion.

Due to the Plan being less than 90 per cent at December 31, 2023, retirees and beneficiaries eligible for a Variable COLA will not receive an increase in their pension in 2024.

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%. 

2024 CPI-1% COLA:

Effective July 1, 2024, a 2.2% cost-of-living adjustment will be added to your monthly pension benefit. An increase in your pension benefit is granted when the increase in Canada’s Average Consumer Price Index (CPI) is greater than 1%.

Your TPP COLA amount was calculated as follows:

The increase in the average CPI for the 12 months ending April 30, 2024 calculation:

The average CPI for 12 months ending April 2024 = 158.6
The average CPI for 12 months ending April 2023 = 153.7

158.6  - 153.7 = 4.9

4.9 / 153.7 = 3.2% (the increase in the average CPI)

CPI minus 1% COLA history:
2024 = 2.2%
2023 = 5.4%
2022 = 3.8%
2021 = 0.0%
2020 = 0.9%

For more information on the CPI, please visit the Statistics Canada website at www.statcan.gc.ca.