Section 5: Supplementary Benefits (Indexation)
Under Part III of the Public Service Superannuation Act, all superannuation pension recipients get automatic annual pension increases every January 1st to help offset increases in the cost of living. These pension increases are added to the monthly amount paid in the previous year, which, after your first year of retirement, will include your pension and all previous increases, not just your basic pension at retirement. Any increase you are entitled to would be included in your pension cheque for the January following your date of retirement. Any further increases would be payable on January 1st of subsequent years. As the supplementary benefits are directly related to the amount of basic pension payable, any reduction in your basic benefit results in a corresponding reduction in the pension increase.
The first cost-of-living adjustment after retirement is pro-rated to take into account only the number of full calendar months for the balance of the year, as illustrated in the following example:
Retirement date: November 16th
Number of full months after retirement date and before January 1st of the year following the year of retirement: one month
Supplementary benefit payable: 1/12 of the full increase authorized for January 1st
Subsequent increases will become payable each January 1st thereafter and will be equal to the full increase authorized for each such subsequent year. You will be officially notified each time an adjustment of your supplementary benefit is made.
In the case of a deferred pension which commences after the year of retirement, supplementary benefits will be added as soon as your pension becomes payable. The amount will be based on the increase in the cost of living from the date you ceased to be employed to January 1st of the year in which your pension commences. The next January and each year thereafter you will receive the full increase authorized for that year.
Re-employment could alter your entitlement to supplementary benefits. Section 8 has further details on this point.
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