November 23, 2009
All OMERS pensions will receive an increase of 0.37% starting in January 2010. The increase reflects 100% of the change in the cost of living as measured by the Canadian Consumer Price Index (CPI).
OMERS determines the annual pension increase using the monthly average of the CPI for the 12-month period ending in October. This is compared to the average for the same period the previous year. The percentage difference determines the cost-of-living increase for pensions. The Canada Pension Plan (CPP) uses the same method to calculate its annual increases.
Provincial income tax rate
Retired members may notice another slight increase in their net pension payments, as a result of the Ontario Ministry of Finance lowering the minimum provincial income tax rate, effective January 1, 2010. In fact, most Ontarians will be paying less provincial income tax (as reported on the Ministry’s website).
Annual statement of pension
In late December, as part of our commitment to keep our members informed about their pensions, OMERS will send every retired member a detailed Annual statement of pension in the mail, showing their updated pension amount for 2010.
How CPI is measured
The CPI measures changes in the cost of living. It is based on the price of a fixed “basket” of goods and services that an average Canadian household would buy in a given month, such as food, shelter, clothing, transportation, and health-care expenses. For more about CPI, please visit www.statcan.gc.ca.
