Cost-of-Living Adjustments

Cost-of-living adjustment (COLA) increases, if any, take effect on January 1 each year and are based on your gross pension, including the ATRF advances and reductions on CPP and OAS (where applicable).

The COLA increase is calculated as follows:

60% X annual increase* in the Alberta Consumer Price Index (ACPI) X pension related to service prior to 1993

plus

70% X annual increase* in the ACPI pension related to service after 1992

*increase in the 12-month period ending on October 31 over the previous 12-month period.

Pensions paid for less than a full year received a pro-rated portion of the COLA.

The Teachers’ Pension Plans Act defines the method used to determine the COLA adjustment applicable to your pension. This method uses the most recent 12-month period ending October 31 compared to the previous 12-month period ending October 31 to determine the ACPI. This method is the same as used by other major pension plans, including the Canada Pension Plan.

Twelve-month periods are used in the calculation so that results are not unduly skewed by sudden or temporary rises or drops in the cost of living. The year-over-year method, often used for news reports, provides a snapshot of the inflation picture compared to the same time last year and is not as representative as the 12-month average method.

For more information on the Statistics Canada 'basket of goods' see Alberta Consumer Price Index.