COLA Increases Take Effect July 1 for Eligible Retirees

March 2023
A retired couple smiling while looking at the screens of a laptop computer and a handheld tablet.

The following cost-of-living adjustments (COLAs) take effect July 1 for eligible retirees in Plan 1, Plan 2 and the Hybrid Retirement Plan (defined benefit component).

  • 5% for Plan 1
  • 3% for Plan 2 and Hybrid Retirement Plan

Eligible retirees will see the COLA amount in their August 1 benefit payment. These COLAs are the maximum allowed under state law.

Other announcements from the VRS Board of Trustees meeting in February include:

  • Members of VSDP receiving long-term disability benefits for at least one year will receive an increase in their LTD benefit July 1 based on the calculated COLA for the year.
    • 5% for Plan 1
    • 3% for Plan 2 and Hybrid
  • The Hazardous Duty Supplement will increase from $14,664 to $16,884, beginning July 1 and paid monthly begining August 1.
  • Retirees with at least 30 years of service get a minimum life insurance benefit that does not reduce below a certain amount, indexed using the Plan 2 COLA each year. The new minimum beginning July 1 is $9,254.