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