News for Pensioners

Inflation Adjustment for 2010

An important benefit of your pension is that it is subject to an inflation adjustment each January.

As explained below, this year inflation was negative. As a result, in January 2010 your pension won’t increase as it usually does at the beginning of the year.

Your annual inflation adjustment is based on the change in the Canadian Consumer Price Index. The index is measured each September. For the year ending September 2009, the inflation index decreased by 0.9%.

Different pension plans may measure changes in the Consumer Price Index in different ways. This can cause year to year differences between pension plans in the amount of inflation adjustment that is granted. A comparison of how adjustments from several major public sector pension plans have compared over the past five years, and their five-year average is shown in the chart below.

In addition to this announcement, pensioners will be informed of this information in a newsletter enclosed with their annual RBC Dexia Electronic Funds Transfer Notification, to be mailed in late December 2009.