Message From The President Highlights It's A Defined Benefit Plan Sources Of Funding Buyer Beware Cost-Of-Living Adjustments Membership Benefit Changes Pension Commmittee Investment Committee Asset Mix Investments At December 31, 2000 Asset Types Investment Managers Custodian/Trustee Pension Plan Performance Financial Statements

You are in: The Plan : Publications : 2000 Annual Report : Cost-Of-Living Adjustments   Cost-Of-Living Adjustments The Plan provides for a guaranteed cost-of-living increase each year. The guaranteed COLA is equal to two-thirds of the increase in the Canadian Consumer Price Index (CPI) to a maximum CPI increase of 4%. COLA increases are granted each July. The Plan maintains a notional COLA account to determine if additional increases to pensions can be made. Each month, 10.2% of employee contributions, plus a matching amount, is credited to this notional account. The portion of benefit payments that related to past COLA increases is deducted from this account. Each year, an actuarial valuation is performed on this account to see if additional COLA increases can be granted. In 2000, the balance in the COLA account was not sufficient to grant an additional increase, so retirees received a COLA increase of 1.72% that was two-thirds of the CPI increase of 2.57%. Past COLA increases account for approximately 16% of the pension benefits paid to retirees in 2000. Copyright 2004. All rights reserved.