The rules regarding cost-of-living adjustments (also known as COLA or indexing) are the same as the indexing rules as provided for by the Public Service Superannuation Plan (PSSP).
COLA for the PSSP is determined by Public Service Superannuation Plan Trustee Inc. (PSSPTI). The Public Service Superannuation Act (PSSA) requires PSSPTI to conduct a funded health review of the PSSP every 5 years. The purpose of the review is to determine the PSSP’s capacity to afford future COLA for the next 5 years and to review the adequacy of contribution rates.
PSSPTI completed a Funded-Health Review in 2020. The 2020 Funded-Health Review was based on the Plan’s funded status as at December 31, 2019, which was 98.5%. As the Plan’s funded status was below 100%, indexing is mandated to be zero for the next 5-year cycle (starting January 1, 2021 and ending December 31, 2025).
Under the PSSA’s funding policy, when the funded status is below 100% on a stipulated valuation date there can be no indexing paid during the following 5-year cycle.
PSSPTI’s next review of the PSSP’s funded health will be in 2025, for the 5-year cycle starting January 1, 2026 to December 31, 2030. The stipulated valuation date for that review is December 31, 2024. For more information on the PSSPTI’s Funded-Health review of the PSSP, please visit: https://www.nspssp.ca/about/psspti-reviews/funded-health-review