Inflation protection

Retired friends hiking in a forest
Once you retire, your monthly pension may increase to protect against increases in the cost of living.

Inflation protection is a valuable benefit designed to increase the amount of your monthly pension in pay through a cost-of-living adjustment based on the increase in the Canadian Consumer Price Index (CPI). The cost-of-living adjustment is also sometimes referred to as indexation.

When you retire and begin receiving your pension, the portion attributable to UPP benefits will be subject to funded conditional indexation. This means that any indexation adjustments will be determined by UPP’s Joint Sponsors. UPP’s target funded conditional indexation is 75% of the increase in CPI for Canada but may be less based on the Plan’s overall financial health and Funding Policy.

Once the indexation adjustment has been made, it is permanently applied to your retirement income, and your pension will never be reduced.

If you have pre-conversion pension service

When your prior plan converted to UPP, UPP promised to honour the pension adjustment provisions of your prior plan. This includes how adjustments are determined/calculated and when they are paid.

If your prior plan had inflation protection, it will still apply to your benefits earned under that plan. Prior plans have varying dates and definitions of inflation protection that only apply to benefits earned under those prior plan provisions. Please contact your university pension administration team for details.


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