New COLA Effective July 1
Eligible retirees will receive a cost-of-living adjustment (COLA) to their benefit amount, effective July 1 and to be included in the August 1 benefit payment.
- Plan 1: 5%
- Plan 2 and Hybrid Retirement Plan: 3%
The Code of Virginia caps the annual COLA at a 3% maximum for Plan 2 and hybrid plan members, or a 5% maximum for Plan 1 members.
The COLA is based on the annual monthly average of the Consumer Price Index for all Urban Consumers (CPI-U), published by the U.S. Bureau of Labor Statistics, and is updated each July 1. During years of no inflation or deflation, the COLA will be 0%.
If you retired under the Basic Benefit or Advance Pension Option, the COLA calculation is based on your Basic Benefit amount. If you retired under the Basic Benefit with the Partial Lump-Sum Option Payment (PLOP), Survivor Option or Survivor Option with the PLOP, the COLA calculation is based on your reduced benefit amount. See the Retiree Handbook for eligibility details.