The rate varies from year to year. Therefore, you cannot be certain of the exact amount you will receive. But did you know that the indexation rates are different for QPP payments and child assistance payments?
Two laws, different calculations
The calculation method for each program’s indexation rate is determined by law. However, the rate varies from one law to the other, as is the case for our two programs.
The calculation of the indexation rate for the Plan is based on the Consumer Price Index (CPI) for Canada, which is published by Statistics Canada. It is the average Consumer Price Index for a 12-month period. However, if the CPI were lower than the one for the preceding year (deflation), the pension amounts would not change.
The calculation is different for child assistance. First, it is calculated based on the CPI for Québec (excluding prices for alcoholic beverages and tobacco products). In addition, the average CPI is not calculated over the same period as the one used for the QPP.
Over the years…
Since 1968, the average indexation rate for the Plan is 4,27%. It hit a high in 1982 with 12,3%. For the child assistance program, which came into effect in 2005, the average indexation rate is 1,67%. The highest rate to date was in 2012 with 2,66%.
Interesting, wouldn’t you say?
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