Pension Act

Marginal note:Annual adjustment of basic pension

• 75 (1) The basic pension shall be adjusted annually in the manner prescribed by regulation of the Governor in Council, so that the basic pension payable for a month in the following calendar year is the greater of

  • (a) an amount equal to the product obtained by multiplying

    • (i) the basic pension that would have been payable for that month if no adjustment had been made under this Part with respect to that following year,

    by

    • (ii) the ratio that the Consumer Price Index for the first adjustment year that relates to that following year bears to the Consumer Price Index for the second adjustment year that relates to that following year, and

  • (b) an amount equal to one twelfth of the average annual gross composite wage, as of the thirty-first day of October of the year in which the adjustment is made, of categories of unskilled members of the public service of Canada designated by the Minister, minus income tax for a single person calculated in the province with the lowest combined provincial and federal income tax rate.

• Marginal note:Adjustment not subsequently affected

  (2) A retroactive change in the wages or income tax rates referred to in paragraph (1)(b) does not affect an adjustment made in accordance with that paragraph.

• Marginal note:Adjustment of other pensions and allowances

  (3) All amounts set out in Schedules I to III shall be adjusted, in the manner prescribed by regulation of the Governor in Council, at the same times and by the same percentage as the basic pension.