Will the Amount of My Pension Change?

Your LAPP pension is paid to you for your lifetime. The amount you receive each month will be consistent, with the exception of a few circumstances which you can read about below.

Cost-of-Living-Adjustment (COLA)
Your pension is protected against inflation. Every year cost-of-living adjustments (COLA) are calculated and applied to pension payments. This helps keep up with the rising costs of goods and services. COLA amounts to 60% of the increase in Alberta's Consumer Price Index.

The amount of the increase will be shown on your annual pension statement, as well as on mypensionplan.ca.


Coordination Increase/Reduction 
Coordination is an option under LAPP which allows some members to receive a temporary increase to their pension until they turn 65.

If you chose coordination when you started your pension, the coordination increase will be removed after you turn 66 and a permanent reduction will start.

If you need a reminder on what the reduction to your pension will be at age 65, you can see that amount on your annual pension statement, as well as on mypensionplan.ca.

What happens if I die with a coordinated pension?

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If You Started Your Pension After 2003 If You Started Your Pension Before 2004

Coordination will continue as long as you are alive.

Coordination will continue for as long as a pension is being paid to you or your pension partner or beneficiary.

If you die before age 65 with a coordinated pension, the increase to the monthly payment will stop. Any amount paid to your pension partner or beneficiaries reverts to your original pension choice without coordination. The pension will not be reduced on the date you would have reached 65.

If you die before age 65 with a coordinated pension, the increase to the monthly payment will continue until the point at which you would have turned 65. Any amount paid to your pension partner or beneficiaries will be reduced on the date you would have reached 65.

If you die after age 65, the reduction in the monthly payment will stop and your pension partner or beneficiaries will receive the original monthly LAPP survivor pension.

If you die after age 65, the reduction in the monthly payment will continue for the survivor pension your pension partner or beneficiaries will receive.

Remember, these changes only refer to your coordination. There can be other decreases if you chose a pension option with a reduced survivor benefit, such as Joint Lifetime Reduced by 1/3. Remember, these changes only refer to your coordination. There can be other decreases if you chose a pension option with a reduced survivor benefit, such as Joint Lifetime Reduced by 1/3.


 

 

Joint Life Reduced by 1/3
If you have a pension partner and chose the Joint Life Reduced by 1/3 pension option, it is paid for the lives of you and your pension partner.

When either you or your pension partner pass away, the monthly pension paid to the survivor will be reduced by 1/3. This means that if your pension partner passes away before you, your pension will be reduced to 2/3 of the original pension amount. Any COLA increases will remain, however.

I'd like to read more about pension options.


Marital Breakdown
If a retired member has his pension divided due to relationship breakdown, the amount of pension received will change.

How can divorce or separation affect my pension?


Retroactive Pay Adjustments
If a collective agreement from your working years is reached after you start your pension and is deemed retroactive (i.e. you receive back pay while receiving your pension), this could change your highest average salary. As a result, your pension may be recalculated.