Pension Increase for 2004
The pension increase for 2004 is 3.3 per cent. For those who retired in 2003 and are entitled to indexation, the increase will be pro-rated based on the number of full months in 2003 after the retirement date. The increase for 2004 will be more than the year-over-year inflation published by Statistics Canada. This is because the pension increase rate is based on the increase in a 12-month average CPI level ending in September, which results in a somewhat different amount than the year-over-year calculation. Last year the pension increase was smaller than the year-over-year calculation. The two methods average out to be the same over time.
