Indexing bulletin 2016—Canadian Armed Forces pensions

Supplementary Retirement Benefits—Part III of the Canadian Forces Superannuation Act

  1. Part III of the Canadian Forces Superannuation Act (CFSA) provides for increases to annuities and annual allowances payable under the CFSA to:
    1. All widows and children in receipt of an annual allowance, regardless of age
    2. Annuitants who are under 60 years of age and were released from the Canadian Forces due to disability

      (Note: Those annuitants who were released under Item 3(b), qualify for the increase only if they were released on or after 1 April 1991. Those released prior to 1 April 1991 are not automatically entitled to the increase and must qualify under paragraph 1(c) or 1(d) below.)

    3. Persons who are under 60 years of age and since retirement have become disabled to the extent that they are incapable of regularly pursuing any substantially gainful occupation
    4. 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. Except for persons who qualify under 1(c) above, or who are eligible under 1(d) above on the date of retirement, escalation of annuities and pensions takes place automatically effective the first day of the month in which they become eligible
  3. Annuities and pensions of persons eligible under 1(d) above on date of retirement will be escalated automatically on 1 January of the year immediately following the year of release
  4. Pensioners who consider themselves to qualify under paragraph 1(c) above, may request consideration of their situation by writing to National Defence Headquarters, Ottawa, Ontario, K1A 0K2, Attention: Director Canadian Forces Pensions Services (8)
  5. On 22 June 1982, Part III of the CFSA was amended to provide for the pro-rating of the first cost of living increase authorized following termination of a member's service, where an immediate annuity or survivors benefit is awarded
  6. The first indexing adjustment authorized in respect of those persons who became entitled to a benefit after 21 June 1982, will be pro-rated to reflect the number of full months remaining in the year after the month in which the first annuity payment commenced. For example, if entitled to indexing on 1 January 2016 and released 25 June 2002, the amount of indexing applicable with respect to 2002 would be 6/12ths of 1.6% (indexing factor) and the balance of indexing applicable would be based on the retirement year of 2003, 27.2%. The rate of the annual increase (indexation) for 2016 is 1.3.

Note: Supplementary Retirement Benefits (SRB) increases to CFSA annuities and DSPCA pensions are based on the average increase to the Consumer Price Index for the twelve month period ending 30 September each year. The increase established 30 September is payable effective 1 January of the following year to those eligible.

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