An “indexed pension” is one that is increased periodically to reflect increases in the consumer price index (CPI). The consumer price index (CPI) is a measure of the degree of change in the price of goods and services purchased by Canadian consumers and is determined monthly by Statistics Canada.
Only about 32% of all defined benefit plans in Canada provide any form of guaranteed indexing after retirement. Most of them are public sector plans where funding comes, at least in part, from taxpayers.
The Board of Trustees regularly reviews the different types of benefits that the plan provides, and makes changes periodically based on what it believes is in the best interests of the members. Since very few (if any) multi-employer pension plans like ours provide guaranteed indexing, and since the cost is significant, the Trustees have not implemented guaranteed indexing as part of the menu of benefit provisions under the plan