2025 Pensioner Increase – Hourly Pension Plan
2025 Pensioner Increase – Hourly Pension Plan
January 1, 2025
2025 Annual Pension Increase (0.25%)
We are pleased to announce that pensions in pay as of January 1, 2025, will be increased in respect of any retiree who was receiving a pension on June 30, 2024.
The “Annual Pension Increase” for January 1, 2025, calculated in accordance with the Plan text and reviewed by our external auditors, resulted in an increase of 0.25% for all eligible Hourly Plan retirees. This increase impacts any member who will receive a pension from the Plan on January 1, 2025 and who was also in receipt of a pension on June 30, 2024. Those who retired between July 1, 2023 and June 30, 2024, will receive a pro-rated increase.
The above is calculated based on the Pension indexing formula. For further details on the calculation of the pensioner increase, please refer to the Audit Statement posted here.
McMaster University Hourly Pension Plan (the “Pension Plan”)
McMaster’s Hourly Pension Plan allows for an annual pension increase when the Plan’s five-year average rate of return exceeds 6.0%. This increase can be up to 100% of the Consumer Price Index (CPI). If the excess return is larger than the current CPI increase, the amount can be used to further top-up the previous three years of increase to bring them up to 100% of CPI (known as a supplemental pension increase).
2025 Supplementary Pension Increase (0%)
The Supplementary Pension Increase provision of the Plan provides for increases in excess of the annual average CPI if the following two conditions are met:
- The rate of return in excess of 6% exceeds the CPI Formula; and
- The cumulative increase from Annual Pension Increases and Supplementary Pension Increases was less than the cumulative increase based solely on CPI Formula increases in the previous 3 years.
Since both conditions were not met, there will not be a Supplementary Pension Increase for January 2025.
Please refer to Section 6.06 and 6.11 of the Pension Plan text for specific details regarding the calculations for the Annual Pension Increase and Supplementary Pension Increase.
The information provided on this website is intended to summarize in plain language, the McMaster University Contributory Pension Plans and their respective audited financial statements. For an exact and complete description of the Plan and the financial statements, consult the Plan Text and audited financial statements. In cases where the information provided on this website differs from that contained in the Plan text and audited financial statements, the Plan text and audited financial statements will govern.
Hourly Pension Plan (Retirees)