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.
Will My Pension Amount Change?
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 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.
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.
Joint Lifetime Pension Reductions
For anyone with a pension commencement date on or after January 1, 2021, please note that the Joint Lifetime Reduced by 1/3 Guaranteed at Least 5 Years pension option is changing in reference to when and if the pension reduces. The new rule states that if a retired member dies before their pension partner, the pension payable to the pension partner is to be reduced by 1/3. However, if the pension partner dies before the retired member, the amount of the member’s pension will not be reduced, meaning there will be no change to the pension amount the retired member receives.
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 in Your Pension Profile.
More about Pension Options
Marital Breakdown
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.