Inflation protection increases OMERS retirement, disability and survivor pensions each year, based on the increase in the Consumer Price Index (CPI), as follows:Â
Benefits earned before January 1, 2023 receive full inflation protection, up to a maximum increase of 6%. Any excess is carried forward to later years when the CPI increase is less than 6%, provided the pension is still in pay.
Benefits earned on or after January 1, 2023 are subject to Shared Risk Indexing (SRI), meaning that the level of inflation protection will depend on the OMERS Sponsors Corporation Board’s annual assessment of the financial health of the OMERS Plan.Â
In December, OMERS sends retired members and survivors their annual pension statement, which provides their annual pension increase. The statements are posted on myOMERS and mailed to members who receive their pension information by mail. The increase as of January 1, 2025 is 2.61%.Â
For benefits earned before January 1, 2023, OMERS calculates the annual inflation increase by using the average CPI over the 12-month period ending in October and compares it with the average for the same period the previous year. The percentage increase determines the inflation adjustment increase for eligible OMERS pensions, up to a maximum increase of 6%.Â
OMERS method of calculating the annual inflation increase (i.e., the CPI increase) is consistent with the method used by the Canada Pension Plan (CPP), except OMERS rounds the results to two decimal places while CPP rounds to one decimal place. Â
For benefits earned before January 1, 2023, the applicable CPI increase will equal the OMERS inflation adjustment in most years except where the CPI exceeds 6%.Â
For benefits earned on or after January 1, 2023, increases are subject to SRI.
Your first pension increase may be prorated based on the month your pension started. For example, if the increase as of January 1, 2025 is 2.61% and your pension started in February 2024, your 2025 increase would be 2.17% (which is 0.8333 of 2.61%). The annual inflation adjustment to pensions in pay will not be impacted by SRI in 2024 and 2025. In January 2026, your pension will receive the full applicable 2026 increase, provided the pension is still in pay.
Learn about the lifetime pension formula and early retirement.
Learn how 2013 benefit changes may impact your pension.
Learn more about the benefits of your OMERS pension.