Indexing is inflation protection which is applicable to all Canadian Armed Forces (CAF) pensions and is administered in accordance with the provisions set out in Part III of the Canadian Forces Superannuation Act (CFSA), Division 3 of the Reserve Force Pension Plan Regulations, and the Supplementary Retirement Benefits Act (SRBA).

Annual pension increases are determined by increases in the Consumer Price Index (CPI) and are announced by Treasury Board in late fall of each year. The initial increase (if the pensioner was released from the CAF prior to June 22, 1982) is based on the cumulative increases from January 1 of the releasing year to December 31 of the year prior to the entitlement being applied. In the case of a former CAF member who was released on or after June 22, 1982, the initial increase is based on the cumulative increases from the 1st day of the 1st full month following the month in which the member received a pension.

Once the CAF pensioner has received the initial cumulative increase, annual increases are applied in January of each year thereafter. All CAF pensioners receive an annual information bulletin about indexing each January.

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