How is my Annual COLA Payment Calculated?
For the January 2019 Payment
Your monthly HEPP pension amount x 12 (months in the year) x COLA rate approved by the Board of Trustees for that year + prior years cumulative COLA amount = actual COLA payment for the year.
Example: Monthly pension is $1,000, prior years cumulative COLA amount is $72, COLA rate is 0.8%.
($1,000 x 12 x 0.008) + $72 = $168.
On January 1, you would receive your $1,000 regular monthly pension amount and a second deposit for your additional annual COLA payment of $168. The next month you would receive your $1,000 regular monthly pension amount.
The COLA will be paid based on the pension you were receiving on November 1 of the previous year, including:
- Any ad hoc COLA that is being paid from HEPP,
- Supplementary and bridge benefits, while you are receiving them, and
- Pensions that have been integrated with OAS on an actuarial equivalent basis.
The COLA will not be paid on:
- COLAs previously granted from the COLA Plan fund. The COLA is not compounded.
- Beneficiary or spousal pensions.