Cost of Living Adjustments

The HEPP Plan Text provides for the payment of Cost of Living Adjustments (COLAs) to retired Plan members on an ad hoc basis, provided there is a sufficient surplus available to fund the adjustment. This means that annual COLA increases are not guaranteed but may be paid when sufficient Plan funds are available. 

Each year, the Plan undertakes an actuarial valuation, which is conducted by an independent actuary. The purpose of the actuarial valuation is to determine the Plan’s funded position. If there is a sufficient surplus, as outlined in the Plan’s Surplus Policy, the surplus may be used to fund additional benefits such as a COLA increase.