Cost-of-Living Adjustments (COLA, also referred to as indexing) for the Members of the Legislative Assembly Pension Plan (MLA Plan) is linked to the Public Service Superannuation Plan (PSSP or Plan).
Your monthly pension payment will not increase due to COLA in 2025.
However, we are pleased to share that following the 2025 Funded Health Review, COLA has been approved at 2.61% per year for the next five-year period, starting January 1, 2026 through December 31, 2030.
About the Funded Health Review
COLA for the PSSP is determined by the Funded Health Review (Review). This Review is conducted in accordance with the Public Service Superannuation Act’s (PSSA) funding policy, which mandates Public Service Superannuation Plan Trustee Inc. (Trustee) to conduct a review of the Plan’s funded health every 5 years. The purpose of the Review is to determine the Plan’s capacity to afford COLA for the next 5 years and to review the adequacy of contribution rates.
The last Review (the 2020 Funded Health Review) was based on the Plan’s funded status at December 31, 2019, which was 98.5%. As stipulated by the PSSA’s funding policy, no COLA can be granted when the Plan’s funded status is below 100%. As a result, COLA was set at 0% for the current five-year period, January 1, 2021 – December 31, 2025.
The 2025 Funded Health Review was based on the Plan’s funded status as at December 31, 2024. At that time, the Plan was 114.6% funded, with a funding surplus of $1.05 billion.
Following the Review, and in accordance with the PSSA’s funding policy, the Trustee approved the following actions:
- Granting of COLA at 2.61% per year for the next five-year cycle, from January 1, 2026, to December 31, 2030.
- Allocation of approximately $525 million of the funding surplus to the Plan’s strategic reserve to help protect long-term financial sustainability.
- Determination that contribution rates for members and employers were sufficient to support the Plan and no changes to contribution rates were required at this time.
After these decisions were applied, the Plan’s funded status was 106.8%, with a surplus of $525 million allocated to the strategic reserve as at December 31, 2024.
The Trustee has a fiduciary duty to manage and administer the PSSP responsibly, ensuring its long-term sustainability while balancing both current and future pension obligations. The Trustee is committed to supporting the sustainability of the PSSP, guided by the PSSA’s funding policy, which provides clear options to effectively manage the PSSP’s assets and liabilities.
If you would like more information on the PSSP’s COLA and the Funded Health Review, visit the PSSP website at:
www.nspssp.ca/about/psspti-reviews/funded-health-review