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: COLA may be granted at 30% of the increase in ACPI. Every year, the Special Forces Pension 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.

The amount of the increase will be shown on your Pensioner Annual Statement, as well as on mypensionplan.ca.

Details on the 2018 COLA are available here.

Bridge Benefit

If you begin collecting your SFPP pension before you turn 65, you will receive a bridge benefit. This benefit is removed at age 65 when other kinds of retirement income often start, such as Canada Pension Plan and Old Age Security.

Pension Options With Reductions

Depending on the pension option you select at retirement, the amount of your pension might be reduced when you or your pension partner pass away.

Relationship Breakdown

Your pension may be divided due to divorce.

Retroactive Pay Adjustments

If you receive a pay adjustment from your working years while receiving your pension, this could change your highest average salary. If this happens, your pension will be recalculated.

Coordination

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.