University of California Retirement Plan (UCRP) and UC-PERS Plus 5 Plan benefit recipients — including survivors, contingent annuitants and those receiving UCRP disability income — will receive a cost-of-living adjustment (COLA) effective July 1, 2024. The increase will appear in checks paid on August 1.
Effective July 1, 2024, the COLA rate is 2.00% for those with a retirement date on or before July 1, 2023.
The COLA for UC-PERS Plus 5 benefit recipients is also 2.00% (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, 2023, are not yet eligible to receive a COLA.
How the COLA is calculated
The 2024 COLA is based on the 2.85% average increase in the Consumer Price Index (CPI) measured from February 2023 to February 2024 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 2.85% 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, 2024, the Inactive COLA for these inactive members is 2.00% for those with a separation date on or before June 27, 2024.