Cost-of-Living Adjustment (COLA)

About COLA

Cost-of-living adjustments (COLAs) help your retirement benefit keep pace with rising costs. The July 1 increase will be included in the August 1 benefit payment of eligible retirees.

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 updated each July 1. The Code of Virginia caps the annual COLA at a 3% maximum for Plan 2 and Hybrid Retirement Plan members, or a 5% maximum for Plan 1 members. 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. Read more about benefit payout options.

Find more information about eligibility and how the COLA is calculated in Your Retirement Roadmap: Handbook for Retirees Under Plan 1 and Plan 2.

COLA Rates