Will My Pension Amount Change?
Your SFPP pension is paid to you for your lifetime. Your monthly pension will be consistent, with a few exceptions:
Cost-of-Living Adjustment (COLA)
SFPP provides you with Cost-of-Living-Adjustments (COLA) to partially offset inflation during your pension years. The adjustment amounts are based on the Alberta Consumer Price Index (ACPI) and the period when you earned your pensionable service:
- Pre-2001 service: COLA is guaranteed at 60% of the increase in ACPI.
- Post-2000 service: SFPP has a target COLA of 30% of the increase in ACPI. Every year, the Corporate Board determines whether COLA can be granted for post-2000 service based on the Plan's funding. For this reason, it is often called Target COLA.
Cost-of-Living-Adjustments are automatically applied to your pension. If COLA is below zero, there is no adjustment and your pension is not reduced.
Details of the 2020 COLA are as follows:
- Retired members with service earned after 2000 will see that portion of their pension increase by 0.51%.
- Retired members with pre-2001 service will see that portion of their pension increase by 1.02%.
Retroactive Pay Adjustments
If you chose coordination when you started your pension, the coordination increase will be removed after you turn 65 and a permanent reduction will begin. To review your reduction amount at age 65, please see your Pensioner Annual Statement or visit mypensionplan.ca.