Results of the 2025 Funded Health Review: COLA (indexing) of 2.61% Granted for 2026–2030
Public Service Superannuation Plan Trustee Inc. (Trustee) has completed its funded-health review (2025 Funded Health Review) of the Public Service Superannuation Plan (PSSP or Plan). The review was conducted in accordance with the Public Service Superannuation Act’s (PSSA) funding policy, which requires the Trustee to assess the Plan’s funded health every five years.
The purpose of the funded health review is to evaluate the Plan’s ability to provide Cost-of-Living Adjustments (COLA, also referred to as indexing) for the next five-year period, and to review the adequacy of contribution rates and Plan benefits.
The Results
The 2025 Funded Health Review was based on the Plan’s funded status as at December 31, 2024. At that time, the Plan was 114.6% funded, with a funding surplus of $1.05 billion.
Following the Review, and in accordance with the PSSA’s funding policy, the Trustee approved the following actions:
- Granting of COLA at 2.61% per year for the next five-year cycle, from January 1, 2026, to December 31, 2030.
- Allocation of approximately $525 million of the funding surplus to the Plan’s strategic reserve to help protect long-term financial sustainability.
- Determination that contribution rates for members and employers were sufficient to support the Plan and no changes to contribution rates were required at this time.
After these decisions were applied, the Plan’s funded status was 106.8%, with a surplus of $525 million allocated to the strategic reserve as at December 31, 2024.
What This Means for PSSP Retirees and Beneficiaries
Eligible retirees and beneficiaries will receive an annual COLA of 2.61% on January 1 each year from 2026 through 2030, subject to the terms of the PSSA.
This decision reflects the Plan’s current funded position and the Trustee’s continued commitment to the Plan’s long-term financial sustainability.
The 2025 Funded Health Review was conducted with the advice and guidance of the Plan’s actuary.
The next Funded Health Review will take place in 2030, where the PSSP’s ability to grant COLA will be based on the Plan’s funded status as at December 31, 2029. The outcome will determine if, and how much, COLA can be provided for the next five-year period, from January 1, 2031, to December 31, 2035.
If you have questions about the funded health review, please email the Trustee at: PSSPTI@nspension.ca.