Will My Pension Amount Change?

Your PSPP pension will be paid to you as a regular amount, every month, for your lifetime. There are exceptions (listed below) which may impact the amount.

Cost of Living Adjustment (COLA)

A significant feature of the Plan is that your pension is protected against inflation. Every year on January 1, after you begin to collect your pension, you will receive a Cost of Living Adjustment (COLA). This adjustment reflects the rising cost of goods and services as measured by the Alberta Consumer Price Index (ACPI).

COLA is granted at 60% of the increase in ACPI.

The amount of the increase will be shown on your Pensioner Annual Statement, as well as in Your Pension Profile.

Relationship Changes

Pensions are considered matrimonial property, which can be divided upon separation or divorce. It is very important to note that not every separation or divorce results in a member’s pension being divided. It is suggested that you seek independent legal advice on this matter. 

More about Relationship Changes

Retroactive Pay Adjustments

If you receive back pay from your working years while receiving your pension, this could change your highest average salary. If this happens, your pension will be recalculated.

Joint Lifetime Pension Reduced by 1/3

This pension is payable for the lives of you and your pension partner. If you die before your pension partner, the monthly payment to your pension partner is reduced by 1/3. This reduced pension will continue to be paid for their life. Your monthly pension will not be reduced if your pension partner dies before you. 

More about Joint Lifetime Pension Reduced by 1/3

Historical Options

Joint Lifetime Pension Reduced by 1/3

For anyone with a pension commencement date before December 31, 2020, upon the death of either the member or non-member pension partner, the pension payable will be permanently reduced by 1/3.

Coordination

Coordination is no longer an option for members starting their pension on or after January 1, 2021. 

If you chose coordination when you started your pension, the coordination increase will be removed after you turn 65 and a permanent reduction will begin. To review your reduction amount at age 65, please see your Pensioner Annual Statement in Your Pension Profile.