The Cost of Living Adjustment (COLA) on Bell Canada's pensions is based on the increase in the Consumer Price Index (CPI) over a 12 month period ending on October 31 of each year.
For pensioners under 65 years of age, this number is rounded to the nearest whole number, to a maximum of 2%.
For pensioners 65 years and over, the rule of our pension plan states that the COLA should be the greater of :
-100% of the increase in the CPI (rounded to the nearest whole number), to a maximum of 2%
-60% of the increase in the CPI (rounded to the nearest two decimal points), to a maximum of 4%.
On November 17, Statistics Canada released the CPI data for the last twelve months. According to Statistics Canada, the CPI rose 4.7% between October 2020 and October 2021 for Canada as a whole.
Based on this, the Cost of Living Adjustment on Bell Canada pensions should be 2% in 2022 for pensioners under 65 years of age and 2.82% for pensioners 65 years and over. The increase will appear on the January pension payment.
And from now on, in addition to monitoring the Bell Canada pension plan indexation, we will also monitor and report on those from BCE, Bell Aliant and Télébec in due time.
In the case of BCE, the indexation is based on the CPI results from August to August, and adjusted on the pensions received in November. Thus, the COLA for 2022 was 2% for less than 65 years of age and 2.46% for 65 years and over.
As to the Bell Aliant pension plan, the indexation that will be provided on January 1st, 2022 is based on the CPI results from October to October. Please note that there is no indexation from TerraNovaTel (Part B) service. Their indexation formula is somewhat complex and we will simplify by saying that for pensioners under the age of 65, the indexation will be 2%. For pensioners 65 years and over, it varies between 2% and 2.82%, depending on the date of retirement and whether the pensioner was unionized or management.
And finally, Télébec's indexation is due in April 2022 and is based on the RRQ (Régie des Rentes du Québec) indexation. Further details will follow in March.