Inflation Protection
One of the benefits of the PJPP is that your pension is protected against inflation. However, depending on when you retired, different inflation protection rules apply. These categories are:
- Judges who retired before June 1, 2007 (administered under Old rules only)
- Judges who were not appointed before June 1, 2007 who elected Old rules
- Judges who were appointed before June 1, 2007 and elected New rules
- Judges who were appointed after June 1, 2007 (administered under New rules only)
The annual inflationary increase for retirees and survivors is based on:
- Average Industrial Aggregate for Old rules
- All-items Consumer Price Index (CPI) for New rules
In addition, under the Old rules, pensions are adjusted based on the salary increases applicable to active members as through the Provincial Judges Remuneration Commission process.
For judges who retired on or after June 1, 2007, their pension is adjusted based on the All-items Consumer Price Index for the two 12-month periods ending in the preceding September.
This increase is effective each year on January 1st.
For example, if the average increase in the All-items CPI for the two years is 2%, your pension will be increased by 2%. Keep in mind, however, that if your pension commenced part way through a calendar year, your first increase will be prorated. For instance, if your pension commenced on July 1 (half-way through the year), your first pension increase will be one-half of the full increase for that year or 1%.
For detailed information regarding annual inflationary increases, please contact OPB's Client Care Centre.