Your monthly pension payment may increase to reflect increases in the cost of living.
Your monthly pension payment may increase as a result of an annual cost-of-living adjustment (COLA). This adjustment may be added to your pension to help it keep pace with increases in the cost of living over time.
COLAs are not guaranteed. They are based on:
- Changes in the Canadian consumer price index (CPI) over a 12-month period from November to October
- The funds available in the inflation adjustment account of BC's College Pension Plan
- The COLA cap. The COLA cap is the maximum amount that can be applied in any given year. The COLA cap is set by the College Pension Board of Trustees following each actuarial analysis of the inflation adjustment account. Having a cap ensures that COLAs, which are not guaranteed, remain sustainable for the long term.
Both active members and employers contribute to the inflation adjustment account. Each year, the College Pension Board of Trustees reviews any changes in CPI and the available funds in the inflation adjustment account. If the board grants a COLA, it will take effect in January.
Once a COLA is granted, it becomes part of your lifetime pension. The COLA is also applied to the bridge benefit and the temporary annuity portion of your pension, if applicable.
See the most recent winter issue of Pension Life to find out if a COLA will be applied and, if so, its percentage. You can check your January pension statement to find out how the COLA may increase your monthly pension payment for the coming year.
Cost-of-living adjustment history
The following table shows the COLAs granted since 2000