OMERS has announced that as of January 2012, pensions will increase by 2.84%. This increase is based on the change in the cost of living as reported by Statistics Canada in the Canadian Consumer Price Index (CPI).
Inflation protection is an important feature of OMERS pensions. Each January, OMERS pensions increase by the average increase in the Consumer Price Index (CPI), to a maximum of 6%.
The Annual Statement of Pension we send to retirees will show their updated pension amount for 2012.
OMERS uses the same method as the Canada Pension Plan (CPP) to calculate its annual increase for pensions. CPP rounds the monthly averages to one decimal place and then calculates the increase. OMERS rounds only the final number to two decimal places.
OMERS determines the annual pension increase using the monthly average of the CPI for the 12-month period of November 2010 to October 2011. This is compared to the average for the same period the previous year. The percentage difference determines the increase for pensions, as follows:
CPI average 12 months (Nov 2010 to Oct 2011) – 1 x 100 = % pension
CPI average 12 months (Nov 2009 to Oct 2010)
119.35 – 1 x 100 = 2.84% (rounded to two decimal places)