Will My Pension Amount Change?

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 granted at 60% of the increase in ACPI. In 2021, this value is equal to 0.78%.

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.

The amount of the increase will be shown on your Pensioner Annual Statement, as well as in Your Pension Profile.


Important notice: Coordination will no longer be an option for members planning to start receiving their pension on or after January 1, 2021. Plan members who chose a pension with coordination and started to receive their pension prior to January 1, 2021, will continue to have that pension option.

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.

More about Coordination

Joint Lifetime Pension Reductions

Important notice: 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.