** ARCHIVED ITEM **
Archived items are provided as an historical record.
This article may not reflect current provisions.
Cost of living adjustment increase of 1.61%
HOOPP pensioners, including deferred pensioners, will get a 1.61 per cent increase effective April 1, 2006. Under HOOPP, an annual cost of living adjustment (COLA) equal to 75 per cent of the previous year's increase in the consumer price index (CPI), to a maximum CPI increase of 10 per cent is guaranteed on all pension service.
From December 2004 to December 2005 the CPI rose by 2.15 per cent. HOOPP's Board of Trustees can provide an additional increase above the 75 per cent guaranteed level, again to a maximum CPI increase of 10 per cent, when funds permit. The Board decided not to provide an ad hoc increase this year, in view of the Plan's small unfunded liability.
An unfunded liability occurs when a pension plan's liabilities – in the form of pension benefits owed to current and future retirees – are greater than its assets.
Details can be found in HOOPP's 2005 Annual Report, which will be posted on the website in late March 2006, and will provide full details on the Plan's funding.
Examples how COLA will increase pensions
| If your basic monthly, pre-tax pension on March 1 is: | Your COLA increase is: | Your April 1, 2006 basic monthly, pre-tax pension is: |
| $500 | $8.05 | $508.05 |
| $750 | $12.08 | $762.08 |
| $1,000 | $16.10 | $1,016.10 |
March 2006
