The government of Canada has announced that, effective January 1, 2026, pension benefits for retirees under the Public Service Pension Plan will be increased by 2.0%. This automatic increase, known as indexation, is designed to help protect your pension against the rising costs of living.
Over time, indexation ensures that your retirement income continues to meet your needs, helping maintain financial security and stability in retirement, even as prices for everyday goods and services rise.
The Public Service Pension Plan is an employer sponsored, defined benefits pension plan that covers most PIPSC members working in the Core Public Administration or at separate employers.
For full details, including how the indexing is calculated and what it means for your pension, please visit the PSPP indexation page. Indexing rate – Retired members