Retired Member Newsletter

OMERS Pensions to Increase 1.61% for 2011

Inflation protection is an important feature of your OMERS pension. OMERS has announced that as of January 2011, pensions will increase by 1.61%.

This increase reflects the change in the cost of living as reported by Statistics Canada in its Canadian Consumer Price Index (CPI).

Each January, OMERS pensions increase by the average increase in the CPI, to a maximum of 6%.

  • OMERS uses the same method as the Canada Pension Plan (CPP) to calculate its annual increases for pensions. CPP rounds to one decimal place, while OMERS rounds to two decimal places.
  • Your Annual statement of pension shows your updated pension amount for 2011.

A pension that is indexed to inflation, like OMERS, helps you keep pace with the rising cost of living and adds to your retirement financial security. Many private sector employment pensions do not offer inflation indexing.

OMERS determines the annual pension increase using the monthly average of the CPI for the 12-month period of November 2009 to October 2010. This is compared to the average for the same period the previous year. The percentage difference determines the increase for pensions.

Pension payment dates for 2011

Direct deposit: OMERS pension payments are deposited on the first banking day of the month, as follows:

Tuesday, January 4 Friday, April 1 Monday, July 4 Monday, October 3
Tuesday, February 1 Monday, May 2 Monday, August 1 Tuesday, November 1
Tuesday, March 1 Wednesday, June 1 Thursday, September 1 Thursday, December 1
  • If your pension started before January 2010: you will receive the full increase of 1.61% in 2011.
  • If your pension started in January 2010 to November 2010,inclusive: your 2011 increase is pro-rated to reflect the number of months you received a pension in 2010. For example, if your pension started in March 2010, you would receive an increase of 1.21% (which is 9/12 of 1.61%).
  • If your pension started in December 2010: you will not get an increase in 2011, but you will get an increase in January 2012.

How the annual increase is calculated

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, including food, shelter, clothing, transportation, and health-care expenses. For more about CPI, please visit www.statcan.gc.ca.

CPI average 12 months (Nov 2009 to Oct 2010) – 1 x 100 = % pension increase
CPI average 12 months (Nov 2008 to Oct 2009)

116.0500 – 1 x 100 = 1.61% (rounded to two decimal places)
114.2167