Staff Pension Plan: COLA update

The UVic Staff Pension Plan is indexed for inflation, which means that each year, pensions receive a Cost of Living Adjustment (COLA).

This adjustment is calculated by determining the average Canadian Consumer Price Index (CPI) of the past 12 months (ie October 2021 to September 2022), compared to the average of the previous 12 months.

Adjustments are capped at a maximum of 3% per year. For any year in which the change in the CPI exceeds 3%, the excess is carried forward to a future year when the change is less than 3%. Similarly, if the change is negative, the amount is carried forward to a future year when it is applied to offset a positive change – thus ensuring that pensions do not get reduced by COLA in any given year.

The indexing adjustment for 2023, based on the Consumer Price Index, is 6.3%. This exceeds the established COLA cap by 3.3%.

Pensioners in the Staff Pension Plan will receive their annual statement in the mail within the next week. This statement will reflect that the COLA increase effective January 1, 2023 is 3% -- the maximum allowable under the Plan.

Due to the high rate of inflation over the past year, the COLA adjustment for 2023 is undergoing review. In cases where the CPI exceeds the cap, supplemental increases may be considered for eligible pensioners aged 66 and over which could result in a supplemental pension increase. This review is being undertaken with the Plan’s actuaries, and should be completed by spring 2023.

Pensioners will be updated as to the results of the review at such time as the information is available.

Information on the UVic Staff Pension Plan is available in detail elsewhere on this website, or by contacting Pension Services at 250-721-7030, or