Cost of Living Adjustments (COLA) to your KW Plan pensions
                                                                                                                            

March 4, 2026: Effective April 1, 2026, the KW Pension Plan will increase all retired, survivor, and deferred member pensions by 2.36%. This increase is equal to 100% of the rate of increase in the Consumer Price Index (CPI) in 2025, which measures inflation in Canada.

For pensions earned in respect of service prior to January 1, 2014, the 2.36% increase includes the contractual obligation of the KW Plan to increase pre‑2014 pensions by 75% of CPI, up to a maximum of 4%. For 2025, this contractual increase is 75% x 2.36% = 1.77%. In addition, the WRHN Board of Directors has approved an ad‑hoc increase of 0.59%, bringing the total increase to 2.36% for pre‑2014 pensions.

For pensions earned in respect of service after January 1, 2014, the KW Plan does not have a contractual obligation to grant Cost of Living Adjustments (COLA). However, this year the WRHN Board of Directors has elected to grant a 2.36% ad‑hoc COLA to post‑2013 pensions.

Retired members will see their gross (before tax) monthly pension payments increase as of April 1, 2026. Those whose pension payments began partway through 2025 will receive a prorated increase.
                                                                                                                            

March 5, 2025: Effective April 1, 2025, the KW Pension Plan will increase all retired, survivor and deferred member pensions by 1.83%. This increase is equal to 100% of the rate of increase in the Consumer Price Index (CPI) in 2024, which is a measure of the rate of inflation in Canada.

For pensions earned in respect of service prior to January 1, 2014, the 1.83% increase includes the contractual obligation of the KW Plan to increase pre-2014 pensions by 75% of CPI, up to a maximum of 4%. For 2024, this contractual increase was equal to 1.37%. In addition, a 0.46% ad-hoc increase was granted by the WRHN Board of Directors, brining the total increase to pre-2014 pensions to 1.83%.

For pensions earned in respect of service after January 1, 2014, the KW Plan does not have a contractual obligation to grant Cost of Living Adjustments (COLA). However, this year the WRHN Board of Directors has elected to grant a 1.83% ad-hoc COLA to post-2013 pensions.

Retired members will see their gross (before tax) monthly pension payments increase as of April 1, 2025. Those with pension payments that started part way through 2024 will receive a prorated increase.
                                                                                                                            

June 25, 2024: Cost of Living Adjustments (“COLA”) that are applied to KW Pension Plan’s deferred vested and retired members’ pension earned after December 31, 2013 is granted on an ad-hoc basis.

From 2014 to 2023, the Grand River Hospital Board of Directors (“Board”) has consistently approved ad-hoc COLA to pensions earned after December 31, 2013.

This year, after a lot of deliberation and discussion, the Board has made a decision to not grant ad-hoc COLA. The Board’s ultimate goal for the KW Plan is to merge with HOOPP. Given the funding gap required to merge with HOOPP, the Board has made a number of decisions that are aimed to reduce the funding shortfall overtime. These decisions, in addition to not granting ad-hoc COLA this year, include:

• 1. Contributing more than the minimum requirement in the KW Pension Plan. Ontario Pension legislation currently requires the Hospital to contribute, at a minimum, $0.56 for every $1 of employee contribution. Since 2020, the Board has decided to contribute $1.26 for every $1 of employee contribution. In 2024, Grand River Hospital expects to contribute approximately $7 Million more than the minimum required amount.
• 2. After careful analysis and consultation with various industry experts, in May 2023, the Board made a decision to change the Plan’s investment strategy. As a result of this decision, KW Plan assets earned a 13% rate of return during 2023. For context, HOOPP’s assets earned a 9.4% return during 2023.
• 3. The Board has also approved the formation of a new “Investment Advisory Sub-Committee” (“IASC”). The IASC, which compromises of pension investment experts from across Canada, will help the Board in managing the investments of the KW Plan and associated risks.

March 25, 2024: Effective April 1, 2024, the KW Pension Plan will increase all retired, survivor and deferred member pensions earned prior to January 1, 2014, by 2.55%. This increase is equal to 75% of the rate of increase in the Consumer Price Index (CPI), which is a measure of the rate of inflation in Canada. 

Retired members will see their gross (before tax) monthly pension payments increase as of April 1, 2024. Those with pension payments that started part way through 2023 will receive a prorated increase.