- Pension increase for 2022 Confirmed by UPP as 2.78% beginning with the September payment.
- UofG Pension Plan inflation adjustments are made when inflation is above 2.0%, calculated on the CPI increase for the 12-month period May 1st to April 30th.
- For pension earned after July 1, 2021 for UPP plan service, adjustments will be made in the January 2023 payment. The UPP inflation formula is different than the UofG legacy plans.
Inflation Formula Details
UofG retiree’s Pension Plan inflation adjustments are calculated each year for the pensions earned prior to the UPP amalgamation (July 1, 2021). The inflation calculation is based on the sum of the monthly changes in the Consumer Price Index (CPI) for the 12-month period May 1st to April 30th each year. When the total inflation is greater than 2.0%, the amount above 2.0% is paid as an increase to pensions beginning with the September payment. For the period ending April 30, 2022 the total CPI increase was 4.78%. The total increase to pension as confirmed by the UofG HR department will be 2.78% (4.78% inflation less 2.0% policy floor level). Another way to think of it, is the first 2.0% of inflation is absorbed by the pensioner each year and any amount above that floor is increased to the pension payment.
For those people who retired after the UPP amalgamation on July 1, 2021, your pension earned after that date is subject to the new UPP inflation formula and paid on the January payment each year. The UPP inflation formula is different than the UofG plan. For the small portion of your pension earned after July 1, 2021, the pension increase is 75% of the total inflation for the calculated period (ie if the inflation was 4.0%, the pension increase would be 3.0%).
Please note that the inflation indexation of your pension may be less than the formula amounts depending on the Plan’s overall financial health and Funding Policy. Indexation of your UPP pension benefits is not guaranteed.