Ad hoc cost-of-living adjustment approved for some UC Retirement Plan (UCRP) benefit recipients
To help offset the impact of higher than usual inflation, the UC Board of Regents voted to approve an ad hoc cost-of-living adjustment (COLA) for some UCRP benefit recipients. This adjustment will apply to benefit recipients whose purchasing power has fallen most significantly: those with a retirement date before July 2, 1991.
Every year, the UCRP provides a COLA to monthly retirement benefits based on a formula that factors in — but does not always match — increases in the Consumer Price Index during the previous year. Historically, the Regents have adopted one-time ad hoc COLAs when, after multiple years of inflation greater than the annual COLA, some annuitants’ purchasing power has dropped below 75%.
To minimize the need for additional measures in the future, the Regents approved an ad hoc COLA, effective July 1, 2022, to restore annuitants’ purchasing power to 85%. See below for an overview of the COLA for each group of eligible benefit recipients.
|
Retirement Date |
Ad Hoc COLA |
|---|---|
|
Before July 2, 1985 |
13.64% |
|
July 2, 1985, to July 1, 1986 |
13.12% |
|
July 2, 1986, to July 1, 1987 |
12.04% |
|
July 2, 1987, to July 1, 1988 |
9.76% |
|
July 2, 1988, to July 1, 1989 |
6.97% |
|
July 2, 1989, to July 1, 1990 |
4.04% |
|
July 2, 1990, to July 1, 1991 |
1.38% |
The ad hoc COLA will appear in benefit payments beginning with the payment that will be made on August 1, 2022.