University of California Retirement Plan (UCRP) and UC-PERS Plus 5 Plan benefit recipients, including those receiving survivor and UCRP disability income, will receive a cost-of-living adjustment (COLA) effective July 1, 2023. The increase will appear in checks paid on August 1.
Effective July 1, 2023, the COLA rate is 2.90% for those with a retirement date on or before July 1, 2022.
The COLA for UC-PERS Plus 5 benefit recipients is also 2.90% (set as the same as the COLA for UCRP benefit recipients with a retirement date of October 1, 1991).
UCRP benefit recipients are eligible to receive a COLA if they have been retired one full year by July 1. Therefore, those members whose retirement or disability date is after July 1, 2022, are not yet eligible to receive a COLA.
How the COLA is calculated
The 2023 COLA is based on the 5.20% average increase in the Consumer Price Index (CPI) measured from February 2022 to February 2023 for the Los Angeles and San Francisco metropolitan areas.
The UCRP COLA formula generally matches the annual increase in the CPI up to 2%, plus 75% of the CPI increase in excess of 4%, to a maximum COLA of 6%. This year, all benefit recipients will receive a COLA that is less than the 5.20% increase in the CPI. Therefore, retained purchasing power for all UCRP benefit recipients will decrease from last year.
Adjustment to HAPC for inactive UCRP members (“Inactive COLA”)
When inactive UCRP members retire or request a lump sum benefit payment, their benefit is calculated based on the Highest Average Plan Compensation (HAPC) as of their separation date. For inactive members who retire with 1976 Tier service credit or who were Safety or Tier Two Members, their HAPC is increased by the lesser of 2% or the actual increase in the CPI, compounded annually, from the separation date to the date the inactive UCRP member retires or requests a lump sum benefit payment.
Effective July 1, 2023, the Inactive COLA for these inactive members is 2.00% for those with a separation date on or before June 29, 2023.
FAQs
Effective July 1, 2023, the COLA rate is 2.90% for those with a retirement date on or before July 1, 2022. The COLA for UC-PERS Plus 5 benefit recipients is also 2.90% (set as the same as the COLA for UCRP benefit recipients with a retirement date of October 1, 1991).
What will the cost-of-living adjustment be for 2023? ›
2023 calendar year COLA factor will be 12.62%. Calculate the COLA amount by multiplying the 2023 COLA factor to the base allowance. The 2023 calendar year payable COLA amount is $126.20.
What is the veterans cost-of-living adjustment for 2023? ›
Veterans' Compensation Cost-of-Living Adjustment Act of 2023
Specifically, the VA must increase the amounts by the same percentage as the cost-of-living increase in benefits for Social Security recipients that is effective on December 1, 2023.
What is the COLA benefit increase for 2023? ›
Social Security recipients will see an 8.7% increase in their benefits beginning January 2023, the Social Security Administration announced today.
What is the cost-of-living adjustment for 2024? ›
In 2024, more than 71 million Americans — including Social Security and Supplemental Security Income beneficiaries — saw a 3.2% cost-of-living adjustment, according to the Social Security Administration.
What is the COLA for federal employees in 2024? ›
What is the amount of the cost-of-living adjustment? For the year 2024, annuitants who retired under CSRS will receive 3.2 percent increase and those who retired under FERS will receive a 2.2 percent increase.
What is the federal salary cost-of-living increase for 2023? ›
The Biden Administration has worked to reverse these trends, providing federal employees a 4.6 percent pay raise in 2023 and a 5.2 percent raise in 2024.
What is the new cola for 2024 VA disability? ›
After two years of record cost-of-living-adjustment (COLA) surges, disabled veterans and military retirees will see an additional 3.2% increase in 2024 in their monthly compensation benefits from the Department of Veterans Affairs.
How much will my VA check increase in 2023? ›
2023 VA Disability Rates. 2023 VA disability pay rates, which are effective December 1, 2022, have a year over year increase of 8.7% based on the latest cost-of-living adjustment (COLA).
Is the VA getting a pay raise in 2024? ›
Effective December 1, 2024, the legislation would specifically increase the rates of compensation for veterans with service-connected disabilities and the rates of dependency and indemnity compensation for the survivors of certain disabled veterans, and for other purposes.
Because this average exceeds 291.901 by 3.2 percent, the COLA effective for December 2023 is 3.2 percent. The COLA calculation, with the result rounded to the nearest one-tenth of one percent, is: (301.236 - 291.901) / 291.901 x 100 = 3.2 percent.
Is Social Security increasing in June 2024? ›
Since 1975, the Social Security Administration (SSA) has made an annual cost-of-living adjustment to account for changes in inflation. The COLA in 2024 was 3.2%. Here are the annual increases for the last five years: 2019: 2.8%
What will the cost-of-living adjustment be this year? ›
Social Security's COLA could shrink to 2.5% for 2025, the lowest increase since 2021. The Social Security cost-of-living adjustment for 2025 could shrink to 2.5% as inflation cools, analysts estimated on Wednesday. That's down from this year's 3.2% increase and the 8.7% jump in 2023.
What is the Social Security tax limit for 2024? ›
2024 Social Security tax limit increase
In 2024, the Social Security tax limit rises to $168,600. (For 2023, the tax limit was $160,200. So, if you earned more than $160,200 this last year, you didn't have to pay the Social Security payroll tax on the amount that exceeds that limit.)
How to calculate cost-of-living increase? ›
You can calculate this by using the following formula:Current employee salary x cost of living increase = Cost of living raiseFor the abovementioned employee, the calculation would be as follows: 40,000 x 0.02 = 800This means that the employee would receive an $800 raise and would now make $40,800 annually.
Will Social Security payments increase by 3.2% in May 2024? ›
How much is the increase: Social Security benefits and Supplemental Security Income (SSI) payments for more than 71 million Americans will increase by 3.2% in 2024. This is the annual cost-of-living adjustment (COLA).
How much will Social Security pay in January 2024? ›
The latest such increase, 3.2 percent, becomes effective January 2024. The monthly maximum Federal amounts for 2024 are $943 for an eligible individual, $1,415 for an eligible individual with an eligible spouse, and $472 for an essential person.
How much will SSI checks be in 2023? ›
Federal Benefit Rate (FBR)
For 2023, the Supplemental Security Income (SSI) FBR is $914 per month for an eligible individual and $1,371 per month for an eligible couple.
