Indexing bulletin 2015—Canadian Armed Forces pensions

Supplementary retirement benefits—Part III of the Canadian Forces Superannuation Act

Part III of the Canadian Forces Superannuation Act (CFSA) provides for increases to annuities and annual allowances payable under the CFSA to:

  1. Persons whose number of complete years of pensionable service when added to their age totals 85 commencing at
    1. age 55, if pension is based on 30 or more years of pensionable service
    2. age 56, if pension is based on not less than 29 years of pensionable service
    3. age 57, if pension is based on not less than 28 years of pensionable service
    4. age 58, if pension is based on not less than 27 years of pensionable service
    5. age 59, if pension is based on not less than 26 years of pensionable service
    6. age 60, if pension is based on less than 26 full years of pensionable service
  2. All survivor's allowance recipients, including children, regardless of age
  3. Persons who are under 60 years of age and were released due to disability (only if they were released on or after 1 April 1991) and
  4. Pensioners who, prior to their normal entitlement date, become entitled to Canada Pension Plan (CPP)/Quebec Pension Plan (QPP) disability benefits and apply for early indexing

The percentage by which pensions increase is equal to any increase in the average of the Consumer Price Index (CPI) for Canada in the 12-month period ending 30 September compared to the same period in the previous year. If there is no change in the CPI, or if it drops, there is no indexing. The result of this calculation is applied to pensions on 1 January of each year.

As an illustration, outlined below are the data used to calculate the 2015 pension increase.

Month/Year Consumer Price Index %
October 2012 122.2
November 2012 121.9
December 2012 121.2
January 2013 121.3
February 2013 122.7
March 2013 122.9
April 2013 122.7
May 2013 123.0
June 2013 123.0
July 2013 123.1
August 2013 123.1
September 2013 123.3
Total 1 470.4
Monthly Average 122.5
Month/Year Consumer Price Index %
October 2013 123.0
November 2013 123.0
December 2013 122.7
January 2014 123.1
February 2014 124.1
March 2014 124.8
April 2014 125.2
May 2014 125.8
June 2014 125.9
July 2014 125.7
August 2014 125.7
September 2014 125.8
Total 1 494.8
Monthly Average 124.6

The pension increase (indexing rate) for 2015 is the percentage increase in the monthly average CPI. This is calculated by subtracting the monthly average for the first period (October 2012 to September 2013) from the average for the second period (October 2013 to September 2014), then dividing this amount by the monthly average for the first period and finally multiplying it by 100, as follows:

124.6  122.5 = 2.1

(2.1 ÷ 122.5) × 100 = 1.7% (indexing rate for 2015)

The Government of Canada pension centre will notify you of any changes to your pension before the changes are applied.

If you think you may qualify under paragraph (d) above, you may request consideration of your situation by writing to the Government of Canada pension centre.

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