2026 Pensioner Increase – Hourly Pension Plan

2026 Pensioner Increase – Hourly Pension Plan

January 1, 2026

McMaster University Hourly Pension Plan (the “Plan”)

We are pleased to announce that pensions in pay as of January 1, 2026 will be increased in respect of any retiree who was receiving a pension on June 30, 2025.

McMaster’s Hourly Pension Plans allow for an annual pension increase when the five-year average return on the fund exceeds 6%. 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 supplementary pension increase).

The details of the increases are set out below.

Annual Pension Increase (1.90%)

The “Annual Pension Increase” for January 1, 2026, calculated in accordance with the Plan text and reviewed by our external auditors, resulted in an increase of 1.90% to pensions paid from the Plan.  This impacts any member who will receive a pension from the Plan on January 1, 2026, and who was also in receipt of a pension on June 30, 2025. Those retirees who retired between July 1, 2024 and June 30, 2025, will receive a pro-rated increase.

For further details on the calculation of the pensioner increase, please refer to the Audit Statement posted here.

Supplementary Pension Increase

The Supplementary Pension Increase provision of the Plans provides for increases in pension if the following two conditions are met:

(1)  The rate of return in excess of 6% exceeds the CPI; and

(2)  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 the first condition was not met, there will be no Supplementary Pension Increase for January 1, 2026.

Please refer 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.