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UPP is increasing the UPP portion of pensions in pay by 1.49% on January 1, 2026.
If you’re a UPP pensioner, survivor, or dependent in pay, the portion of your monthly pension earned after your employer joined UPP will increase by 1.49% effective January 1, 2026. This increase reflects UPP’s conditional funded indexation target of 75% of the Consumer Price Index, which we have been able to grant every year since inception.
If this increase applies to your pension, you will receive a letter in January 2026 with details about this UPP increase. You’ll receive this letter based on your communication preference, but you can view it sooner in the myUPP Member Portal this month. Sign in to the portal anytime to make sure your contact information is up to date.
If you were a member of your employer’s prior pension plan before they joined UPP, your pension may have two parts:
- Your pre-conversion pension: the portion you earned before your employer joined UPP, and
- Your UPP pension: the portion you earned after your employer joined UPP.
The 1.49% increase applies only to your UPP pension. Any increase to your pre-conversion pension will continue to follow the rules of your prior plan, including how and when increases are determined and paid. You’ll be informed of any change to your pre-conversion pension separately, based on your prior plan’s indexation dates.
Pre-conversion indexation schedule:
- University of Toronto: July 1
- Trent University: July 1
- Victoria University: July 1
- University of Guelph: September 1
- Queen’s University: Effective September 1, paid December 1
To learn more about how indexation works for your prior plan, refer to your Pre-conversion Guide.
What is inflation protection?
Inflation protection, also known as indexation, is a UPP benefit that helps preserve the value of your pension over time and keep pace with the rising cost of living through annual increases based on changes in the Canadian Consumer Price Index (CPI). The term indexation is also used to describe your pre-conversion pension provisions, which may follow different rules not tied to the CPI.
What is the Consumer Price Index (CPI)?
To measure changes in the cost of living, Statistics Canada tracks the price of a fixed basket of goods and services typically purchased by Canadian households. Each month, it compares the average price of that basket to the previous month.
This measure is called the Consumer Price Index (CPI). It is used as an indicator of how consumer prices are changing, and the rate of inflation in Canada.
You can find more information about the CPI on the Statistics Canada website.
How does UPP calculate the inflation protection rate?
When you retire with a UPP pension, you receive a secure income for life. Your pension earned from UPP service includes conditional funded indexation, with a target of 75% of the annual increase in the Canadian CPI, depending on the Plan’s funding status. Since UPP’s inception, we’re pleased to have provided the full 75% of the CPI increase each year.
Determining the inflation protection increase for January 1, 2026:
For 2026, the CPI increased by 1.99% (measured from October to September), and 75% of that increase equals 1.49%. This means members receiving pensions (including survivors and dependents in pay) will receive a 1.49% increase on the UPP portion of their pension effective January 1, 2026. Learn more.
How was the 2026 increase determined?
Each year, UPP looks at changes in the cost of living using Canada’s CPI. We compare (a) the average CPI over the most recent 12 months (October to September) with (b) the average CPI from the 12 months before that. The difference shows how much prices have increased, and UPP applies 75% of that change to determine your inflation protection rate.
(a)= 163.28
(b) = 160.09
=
Increase in CPI
1.99%
75% of the 1.99% increase = 1.49%
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Who receives UPP’s inflation protection increase for 2026?
All members, survivors, and dependents who began receiving a pension before 2026 and earned some or all of your pension after your employer joined UPP will receive the 2026 inflation protection increase. This increase applies only to the portion of your pension earned after your employer joined UPP.
Why is my increase less than 1.49%?
If your pension payments became effective in 2025, the indexation amount is prorated based on how many months your pension was in pay that year. For example, if your pension was effective July 1, 2025, your indexation is based on the six months you received a pension in 2025, and you’ll receive 50% of the 1.49% increase.
Frequently asked questions
My pension plan converted to UPP. Why doesn’t this indexation apply to my pre-conversion pension?
As part of the conversion, UPP continues to follow the indexation provisions of your prior plan for your pre-conversion pension. This includes how and when any adjustments are determined/calculated and paid. If you had already retired when your prior plan joined UPP, your entire pension continues to be indexed based on your prior plan’s terms.
If you were an active member of your employer’s prior pension plan before they joined UPP, your pension may have two parts:
- Your pre-conversion pension: the portion you earned before your employer joined UPP, and
- Your UPP pension: the portion you earned on and after your employer joined UPP.
Your pre-conversion pension will continue to be indexed based on your prior plan’s terms and your UPP pension will be indexed based on UPP’s inflation protection increase for 2026.
How much does my pre-conversion pension increase this year?
Your pre-conversion pension will be increased based on the indexation provisions of your prior plan. You’ll receive a letter from UPP closer to when indexation is applied to your pre-conversion pension, notifying you of any change to your pension amount and when it will take effect.
Prior plan indexation schedule:
- University of Toronto: July 1
- Trent University: July 1
- Victoria University: July 1
- University of Guelph: September 1
- Queen’s University: Effective September 1, paid December 1
For more information on how indexation is determined for your pre-conversion pension and when it’s applied, please refer to your Pre-conversion Guide.
Have additional questions?
Please contact our UPP Member Services team available:
Monday to Friday, 8:30 am – 5 pm ET.