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 is a reflection of the rising cost of goods and services as measured by the Alberta Consumer Price Index (ACPI).
COLA is currently granted at 60% of the increase in ACPI. In 2020, this value is equal to 1.02%.
COLA will also be applied to a deferred pension for any years between the time you stop participating in the Plan and when you begin your pension.
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 or visit mypensionplan.ca.
More about Coordination
Joint Lifetime Pension Reductions
Depending on the pension option you selected at retirement, your pension amount might be reduced when you or your pension partner pass away. To review your pension choice, please see your Pensioner Annual Statement or visit mypensionplan.ca.
More about Pension Options
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 Breakdown
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.