Ad hoc cost-of-living adjustment approved for some UC Retirement Plan (UCRP) benefit recipients
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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.