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The pension indexation rate for federal public sector pensions will be 4.8 per cent in 2024, according to the National Association of Federal Retirees.

The rate, which is set by the Treasury Board Secretariat in accordance with the Public Service Superannuation Act and the Supplementary Retirement Benefits Act, is a decrease from last year’s indexation rate of 6.3 per cent.

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Each year, the government agency calculates pension increases for retired members by comparing a 12-month average of the consumer price index to the yearly average for the previous year. The calculation takes into consideration the monthly CPI average between Oct. 1 and Sept. 30, with the remaining months rolled over into the following year’s rates.

While the indexation doesn’t directly consider inflation, the calculation still shows the impacts of inflation since both are based on the progress of CPI, according to the NAFR. “Sometimes, one will be higher than the other, but they eventually catch up to each other,” it said in a press release.

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