Pension Connection | Winter 2024

Posted: December 2024 Download the PDF Print this page Email the link

In this issue:

• Pensions to increase by 2.7%
• Cost of living adjustment for your pension
• Mark your calendar! 2025 pension pay dates
• Retirees with defined benefit pensions stimulate the economy
• Marking 10 years of Movember at OPTrust
• Taking a holistic approach to Financial Literacy Month

Pensions to increase by 2.7%

Starting January 2025, your pension will increase by 2.7 per cent. The annual cost of living adjustment (COLA) is a valuable feature of the OPSEU Pension Plan, which helps protect your pension against the impact of inflation, ensuring it does not lose value over time.

For instance, a retiree who began receiving a $20,000 pension in January 1995, would receive $37,313 from OPTrust in 2025. This is an 87 per cent increase over 30 years.

The inflation rate is measured by the Consumer Price Index (CPI), reported by Statistics Canada. The CPI reflects the cost of a weighted basket of goods and services that are typically purchased by Canadian consumers every month. It is widely used as an indicator of the change in the general level of consumer prices and the rate of inflation.

Cost of living adjustment for your pension

What happens if I retired in 2024?

If you retired in 2024, your cost of living adjustment (COLA) is pro-rated for the length of time you received a pension. For example, if you retired in June 2024, your pro-rated COLA is calculated by using the number of months you received a pension, divided by 12, times the 2025 increase (6 ÷ 12 x 2.7% = 1.35%).

In January 2025, your pension would increase by 1.35 per cent to reflect the cost of living for six months. In the future, any COLA granted will not be pro-rated.

How is the increase calculated?

OPTrust’s annual COLA is calculated based on the change in the average monthly Consumer Price Index (CPI) between October and September for the previous two years. Read our fact sheet for more information.

Mark your calendar! 2025 pension pay dates

Wondering when your pension will be paid in 2025? View our 2025 pension pay dates below. Pensions are paid each month, usually on the 26th, except for December and any month where the 26th falls on a weekend.

We deposit your pension electronically into your account at your financial institution. If you want to change that account, we need to hear from you by 10 a.m. on the “cut-off date” to get the change in place prior to that month’s payment.

Retirees with defined benefit pensions stimulate the economy

Did you know your defined benefit (DB) pension plays a major role in fuelling both the Ontario and Canadian economy?

A recent study by the Conference Board of Canada, which we commissioned with Healthcare of Ontario Pension Plan (HOOPP) and University Pension Plan (UPP), found that DB pension plans like ours support an estimated 1.23 million retirees in Ontario and their families. In 2023 alone, pension-related spending contributed $34.6 billion to Ontario’s gross domestic product, representing about three per cent of Ontario’s total GDP.

Other highlights include:

• • 98 per cent of DB pension payments are spent within Canada.
• • Every dollar of DB pension benefits generates $1.43 in economic output.
• • DB pension beneficiaries support 251,900 full-time jobs in Ontario.

Marking 10 years of Movember at OPTrust

This year marks a decade of OPTrust participating in Movember. Over the years, we’ve collectively raised more than $80,000 to support men’s health, through OPTrust Cares, a grassroots charitable giving program.

“What I appreciate most about Movember is how it aligns with our shared values and encourages open conversations about important yet difficult topics, such as mental health, suicide prevention, prostate and testicular cancers,” said Peter Lindley, OPTrust’s president and CEO.

Statistics show that on average, men die 4.5 years earlier than women, largely from preventable causes. Globally, one man dies by suicide every minute of the day, making Movember not just about raising awareness, but also about taking action and offering support to others.

Taking a holistic approach to Financial Literacy Month

As part of Financial Literacy Month in November, we took a holistic approach to supporting our members who are nearing retirement. So, whether our members are planning financially, emotionally or mentally, we’re here to support them each step of the way.

We have created an Emotional Readiness brochure to help members retire with purpose and fulfillment by building lasting habits to stay active and socially connected during retirement.

We are also encouraging members to visit the Government of Canada's Retirement Hub to explore other income sources like the Canada Pension Plan and Old Age Security, plus get helpful financial tips.