Following your second full year of retirement, your pension will be increased each year by an amount equal to at least 2/3 of the Consumer Price Index (CPI) to a maximum CPI increase of 4.0%.
Let’s look at an example. If the CPI increase is 4.0% in a year, your pension will increase by at least 2.67% (2/3 of 4.0%). If we use the same example as we used earlier, your actual increase totals $472.59 (2.67% x $17,700).
Note: If the Plan can afford it, you may receive increases of up to 100% of the CPI in a given year.
The actual size of the increase will depend on:
- the amount of your pension (including previous increases),
- the actual increase in the CPI for the year,
- the Plan’s funded status, and
- how long you have been retired.
If you retire after May in a given year, for example, you will not receive any increase for that year. If you retire in May or earlier, you will receive a portion of that year’s increase.
In your second year of retirement, you will receive a larger portion of that year’s increase – again, depending on the month in which you retired.
After your second year of retirement, you’ll get the full increase payable each year.
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