Indexing—Canadian Armed Forces pensions

Normally, on the 1st of the month of your birthday, between the ages of 55 and 60, depending on how many full years of pensionable service you have to your credit.

The first increase will never commence later than age 60. If, prior to your normal entitlement age, you become disabled and are in receipt of Canada Pension Plan (CPP)/Quebec Pension Plan (QPP) disability benefits, contact the Government of Canada Pension Centre to apply for early indexing.

If you are entitled to indexing at retirement, your first indexing increase will be implemented on January 1 of the year following your year of retirement. This amount will be pro-rated to reflect the number of full months remaining in the year of your retirement. In subsequent years, you will be entitled to the full increase.

Once you are entitled to indexing, your pension is increased on January 1 of each year to take into account the cost of living, based on increases in the CPI.

• Persons whose number of complete years of pensionable service when added to their age totals 85 commencing at:
  1. age 55, if pension is based on 30 or more years of pensionable service
  2. age 56, if pension is based on not less than 29 years of pensionable service
  3. age 57, if pension is based on not less than 28 years of pensionable service
  4. age 58, if pension is based on not less than 27 years of pensionable service
  5. age 59, if pension is based on not less than 26 years of pensionable service
  6. age 60, if pension is based on less than 26 full years of pensionable service
• All survivor allowance recipients, including children, regardless of age
• Persons in receipt of a pension who are under 60 years of age and who:
  1. were disabled, as defined under Part I of the CFSA or para. 43(1)(d) of the RFPPR, as applicable, at the time of their retirement from the Canadian Armed Forces

     Note: Members who were released on medical grounds prior to April 1, 1991 are not automatically entitled to the increase and must qualify under paragraph ii below or based on their complete years of pensionable service when added to their age as described above

  2. have become disabled to the extent that they are incapable of regularly pursuing any substantially gainful occupation

The indexing is based on a comparison of the Consumer Price Index (CPI) average for the 12-month period ending September 30 the same period in the previous year. If there is no change in the CPI, or if it drops, there is no indexing. The result of this calculation is applied to pensions on January 1 of each year.

Outlined below are the data used to calculate the 2023 pension increase.

The pension increase for 2023 is calculated by subtracting the monthly average for the first period (October 2020 to September 2021) from the monthly average for the second period (October 2021 to September 2022). The amount is divided by the monthly average for the first period and multiplied by 100, as follows:

The Government of Canada Pension Centre will notify you of any changes to your pension before the changes are applied. Also, Canadian Armed Forces (CAF) pensioners receive an annual information bulletin about indexing each January.