Inflation Protection After Retirement
Retired members and beneficiaries are eligible to receive an annual cost-of-living adjustment (COLA) to their monthly benefit each January.
There are two levels of COLA, which are based on the period during which the pension benefit was earned. Benefits earned up to June 30, 2015 receive guaranteed COLA and benefits earned after that date are eligible for conditional COLA, as shown in the chart below.
Monthly Benefits | Cost-of-Living Adjustment |
---|---|
Benefits earned up to June 30, 2015 | Guaranteed COLA: 80% of inflation*, to a maximum of 3% per year. |
Benefits earned after June 30, 2015 | Conditional COLA: 0 to 100% of inflation*, to a maximum of 5% per year. |
*Inflation is determined as the percentage increase in the Consumer Price Index for Canada for the 12 months ending on the previous October 31.
The level of conditional COLA for any year depends on the financial status of the Plan, as determined by actuarial funding valuations, and approval by the STF Executive on the recommendations of the STF Pension and Benefits Board of Directors. Conditional COLA is also subject to federal and provincial pension legislation.
On the first January following your date of retirement, your COLA will be pro-rated based on your retirement date. For example, if your retirement date was in July, you received pension payments for half of a year, so your pension will be increased by half of the COLA.
2025 Cost-of-Living Adjustment
The following COLAs are applicable for January 1, 2025:
Monthly Benefits | Cost-of-Living Adjustment |
---|---|
Benefits earned up to June 30, 2015 | Guaranteed COLA: 2.1% |
Benefits earned after June 30, 2015 | Conditional COLA: 2.6% |