The cost-of-living adjustment (COLA) is a critical benefit that helps maintain the purchasing power of your pension. For 2025, we’re pleased to share that the COLA for Public Service Pension Plan (PSPP) retired members and their survivors is set at 2.7%. Here’s a detailed breakdown of what this means for you and how you can make the most of this update.
Table of Contents
What is the 2025 COLA?
The 2025 COLA reflects an increase of 2.7%, ensuring your pension keeps up with inflation. This adjustment will be reflected in your gross monthly pension, and a breakdown will be included in your Retired Member Statement (RMS), which you’ll receive in January 2025.
For retired TVO Plan members and their survivors, the 2025 COLA is set at 1.64%, following the TVO Plan rules.
How COLA Works for PSPP Members
How Is COLA Calculated?
COLA is calculated based on the change in the Consumer Price Index (CPI) over a specified period. This ensures your pension aligns with inflation and maintains its value.
Why Might the COLA Differ From Media Reports?
The COLA for PSPP members is specifically calculated based on plan rules, which may differ from the broader CPI figures reported in the media.
How Does COLA Impact My Pension?
The adjustment will be applied automatically to your pension payments starting in 2025. It helps protect your purchasing power by offsetting inflationary increases in costs for everyday items.
CPP Payment Dates 2025: Increases & Amounts
OAS Payment Dates 2025: Increases and Amounts Explained
Here’s Who Can Receive the Maximum CPP Pension in Canada
Smart Strategies to Maximize Your CPP Benefits and Increase Retirement Income
Important Dates and Information for 2025
Tax Documents for 2024
- Your T4A or NR4 tax slips for 2024 will be available through your e-services account by early to mid-February 2025.
- A physical copy will also be mailed to you by ADP.
Pension Payment Dates
The 2025 pension pay dates have been mentioned on Pension pay Dates page. Planning ahead for these dates can help with financial management.
Direct Deposit Setup
No matter where you live—Canada, the U.S., or abroad—you can sign up for direct deposit for faster, hassle-free pension payments.
Key End-of-Year Considerations
Update Your Personal Information
Ensure your address, marital status, and other personal details are up to date by visiting e-services or contacting us directly.
Early Retirement Bridge Benefit
If you turn 65 in 2025, note that your early retirement bridge benefit will end the month you reach your 65th birthday.
Medical and Dental Submissions
If you’re holding on to any 2023 medical or dental receipts, you may still submit them for reimbursement until the end of 2024. Visit our Insured Benefits page for more details.
Haven’t Registered for e-Services?
Registering for e-services is easy. Click “Login” at the top of our website and follow the “Member Registration” instructions to get started.
Special Notes for Other Plans
TVO Plan Members and Survivors
- COLA for 2025 is 1.64%, based on TVO Plan rules.
- Retired members will receive their RMS in December 2024 with a breakdown of gross monthly pension.
- Survivors will receive their annual COLA letter in mid-December 2024.
Ontario Northland Plan Members and Survivors
- Members in the Northline Transfer Group will continue to receive a set annual increase, and RMS will be mailed in 2025.
- Other Ontario Northland Plan members may receive an ad hoc COLA, determined based on the plan’s funding policy and surplus. A decision letter has already been mailed regarding the 2025 COLA.
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If you have any questions about your COLA, tax documents, or pension payments, Client Care Centre is here to help.
- Phone:
- Local: 416-364-5035
- Toll-free (Canada and U.S.): 1-800-668-6203
- Email: [email protected]
“Stay Informed and Secure: Protecting Your Pension with COLA”
The annual COLA is more than just an adjustment—it’s a safeguard against inflation, ensuring your pension remains a reliable source of income. By staying informed and managing your personal details, you can maximize the benefits of your PSPP plan.
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