OMERS announced that pensions will increase by 1.16% as of January 1, 2016. This increase reflects the change in the cost of living as measured by the Canadian Consumer Price Index (CPI).
OMERS inflation protection increases retirement, disability and survivor pensions each year. OMERS uses a similar method to that used by the Canada Pension Plan (CPP) to calculate its annual increase for pensions, but CPP has a different rounding approach.
In late December 2015, OMERS will send an Annual Statement of Pension to members and survivors, with their updated pension amount for 2016. Members whose pensions began in 2015 will receive a pro-rated increase.
How the Annual Increase is Calculated
Here’s how this year’s increase was calculated:
CPI average 12 months (Nov 2014 to Oct 2015) – 1 x 100
CPI average 12 months (Nov 2013 to Oct 2014)
126.26 – 1 x 100 = 1.16% (rounded to two decimal places)