The cost-of-living adjustment (COLA) is an important benefit that helps keep your pension’s buying power stable. In 2025, the Public Service Pension Plan (PSPP) retirees and survivors will get a 2.7% COLA. Here’s a thorough explanation of what this implies for you and how you may take advantage of this upgrade.
Table of Contents
What is the 2025 COLA?
The 2025 COLA indicates a 2.7% rise, ensuring your pension stays pace with inflation. In January 2025, you will get your Retired Member Statement (RMS) with a breakdown of the change to your gross monthly pension.
The 2025 COLA for retired TVO Plan members and their survivors is 1.64%, in accordance with TVO Plan guidelines.
How COLA Works for PSPP Members
How Is COLA Calculated?
COLA is determined using the change in the Consumer Price Index (CPI) during a certain time period. This guarantees that your pension keeps up with inflation and preserves its value.
Why Might the COLA Differ From Media Reports?
The COLA for PSPP members is computed using plan guidelines and may vary from the wider CPI estimates released in the media.
How Does COLA Impact My Pension?
The change will be implemented automatically to your pension payments beginning in 2025. It protects your spending power by countering inflationary rises in the pricing of ordinary things.
Important Dates and Information for 2025
Tax Documents for 2024
- Your T4A or NR4 tax slips for 2024 will be available through your e-services account by early to mid-February 2025.
- A physical copy will also be mailed to you by ADP.
Pension Payment Dates
The 2025 pension pay dates have been mentioned on Pension pay Dates page. Planning ahead for these dates can help with financial management.
Direct Deposit Setup
No matter where you live—Canada, the U.S., or abroad—you can sign up for direct deposit for faster, hassle-free pension payments.
Key End-of-Year Considerations
Update Your Personal Information
Ensure your address, marital status, and other personal details are up to date by visiting e-services or contacting us directly.
Early Retirement Bridge Benefit
If you turn 65 in 2025, your early retirement bridge benefit will stop in the month you turn 65.
Medical and Dental Submissions
Medical or dental receipts from 2023 may still be submitted for reimbursement until the end of 2024. See our Insured Benefits page for additional information.
Haven’t Registered for e-Services?
Registering for e-services is simple. To get started, click “Login” at the top of our website and then “Member Registration”.
Special Notes for Other Plans
TVO Plan Members and Survivors
- COLA for 2025 is 1.64%, based on TVO Plan rules.
- Retired members will receive their RMS in December 2024 with a breakdown of gross monthly pension.
- Survivors will receive their annual COLA letter in mid-December 2024.
Ontario Northland Plan Members and Survivors
- Members in the Northline Transfer Group will continue to receive a set annual increase, and RMS will be mailed in 2025.
- Other Ontario Northland Plan members may receive an ad hoc COLA, determined based on the plan’s funding policy and surplus. A decision letter has already been mailed regarding the 2025 COLA.
If you have any questions about your COLA, tax documents, or pension payments, Client Care Centre is here to help.
- Phone:
- Local: 416-364-5035
- Toll-free (Canada and U.S.): 1-800-668-6203
- Email: [email protected]
“Stay Informed and Secure: Protecting Your Pension with COLA”
The yearly COLA is more than simply an adjustment; it protects your pension against inflation, ensuring it stays a sustainable source of income. By being informed and controlling your personal information, you can get the most out of your PSPP plan.
Also See: Canada’s Push for Automatic Tax Filing: A Game Changer for Taxpayer
