Inflation Protection

OMERS pensions in pay receive an annual inflation increase. The increase as of January 1, 2018 is 1.49%.

In December, we send retired members and survivors a personalized Annual Statement of Pension showing the details of their January pension increase.

How inflation protection works

  • Each January, your OMERS pension increases by 100% of the increase in the Canadian Consumer Price Index (CPI), up to a maximum of 6%. If the CPI is greater than 6%, the excess is carried over for use in future years.
    The CPI measures approximate changes in the cost of living based on the price of a basket of goods that an average Canadian household buys. The basket includes food, housing, transportation, energy, furniture, clothing and recreation. More about the CPI is at Statistics Canada's website.

How OMERS calculates the annual inflation increase

OMERS uses the average of the CPI for the 12-month period ending in October, and compares it to the average for the same period the previous year. The percentage increase determines the increase for pensions. For example, the inflation increase as of January 1, 2018 is 1.49%:

OMERS method of calculating the annual inflation increase is consistent with the method used by the Canada Pension Plan (CPP), except OMERS rounds to two decimal places, while CPP rounds to one decimal place.

How your first increase is pro-rated

Your first increase may be pro-rated to reflect the number of months you received a pension in 2017. For example, the increase as of January 1, 2018 is 1.49%. If your pension started in February 2017, your 2018 increase would be 1.24% (which is 10/12 of 1.49%). In January 2019, your pension will receive the full 2019 increase.
For a pension that began in… Pro-rating (first increase only)
January 2017 11/12
February 2017 10/12
March 2017 9/12
April 2017 8/12
May 2017 7/12
June 2017 6/12
July 2017 5/12
August 2017 4/12
September 2017 3/12
October 2017 2/12
November 2017 1/12
December 2017


A pension that began in December 2017 will not get an increase in January 2018, but will get an increase in January 2019.