** ARCHIVED ITEM **

Archived items are provided as an historical record.
This article may not reflect current provisions.

COLA Increase of 1.23 Per Cent

HOOPP pensioners, including deferred pensioners, will get a 1.23 per cent cost of living adjustment on their pension entitlements on April 1, 2007.

Under HOOPP, an annual 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 the portion of pensions which is in respect of service to the end of 2005. From December 2005 to December 2006 the CPI rose by 1.64 per cent.

The Board can elect to provide further increases, an ad hoc COLA up to 100 per cent of CPI (again, to the 10 per cent maximum) on service up to the end of 2005, as well as an ad hoc adjustment on service after 2005 (i.e. service which does not attract guaranteed COLA).

The Board has elected to provide an ad hoc COLA adjustment for 2006 at 75 per cent of the 2006 CPI. This means pensioners will receive an equal COLA on all their service.

HOOPP’s Board of Trustees is aware of the importance of providing COLA to pensioners and has consistently worked to ensure that HOOPP pensions maintain their buying power. Visit the Power of inflation protection page to see the COLA provided since 1999.

Please remember that if you elected a deferred pension or retired during 2006 your COLA is prorated. For example if you retired effective July 1, 2006, your COLA will be 0.62 per cent, or half of 1.23 per cent.

March 2007