Federal Pension Indexation
At the end of each year, the Treasury Board provides the Association with information on the pension indexing increase that is effective on January 1st. The pension indexation rate effective January 1, 2023, is 6.3%.
The maximum pensionable earnings under the Canada Pension Plan (CPP) for 2023 will be $66,600 – up from $64,900 in 2022.
The employee and employer contribution rates for 2023 will be 5.95% – up from 5.70% in 2022, and the self-employed contribution rate will be 11.90% – up from 11.40% in 2022.
The indexing rate (COLA) for current pension recipients for January 2023 is 6.5%, based on the average CPI from November 2021 to October 2022.