New COLA Effective July 1

RICHMOND, Va. March 25, 2004—The Virginia Retirement System (VRS) Board of Trustees announced a 2.3 percent Cost of Living Adjustment (COLA) for retirees, effective July 1, 2004. The increase will be applied to the benefit payment retirees receive dated July 30, 2004.

COLAs become effective the second calendar year after retirement and are applied July 1 each year. The amount of the adjustment is equal to the full amount of the first 3 percent increase in the Consumer Price Index – Urban and half the increase from 3 percent to 7 percent. Under current law, COLAs cannot exceed 5 percent.

VRS is the 30th largest public or private pension fund in the U.S. and provides benefits to 117,000 retirees and 317,000 active members.

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