TRB: Cost of Living Adjustments - January, 2019

Cost of Living Adjustments - January, 2019


Social Security has announced that they will be granting a cost of living increase of 2.8% for the year 2019.  Based on the statutes governing Cost of Living Adjustments (COLA) for CTRB members, the Connecticut Teachersí Retirement Board will be granting COLA as follows.


COLA Group COLA Increase
Members retired prior to September 1992
Not Available
Members retired on or after September 1, 1992 and joined the system prior to July 1, 2007
1.5%
Members retired on or after September 1, 1992 and joined the system on or after July 1, 2007
1%

The Connecticut Teachersí Retirement Board provides for an annual cost of living adjustment (COLA) once a member has been retired for at least a minimum of nine months.  COLA increases are paid in either January or July depending on the member's effective date of retirement.  The annual COLA date for members retiring November through April is January and the annual COLA date for members retiring May through October is July.

Members who retired prior to September, 1992 and who receive their annual cost of living adjustment in January (not July) will receive an increase based on the National Consumer Price Index for the twelve month period ending on November 30th. Members who retired prior to September, 1992 and who receive their annual cost of living adjustment in July will receive an increase based on the National Consumer Price Index for the twelve month period ending on May 30th. The COLA increase ranges from a minimum of 3% to a maximum of 5% annually. 

For members who retired on or after September 1, 1992 and joined the system prior to July 1, 2007, the COLA is calculated by using the cost of living adjustment granted by the Social Security Administration for the applicable year and the investment performance of the retirement fund for the preceding fiscal year, subject to a maximum of 6%. If the investment performance of the retirement fund for the preceding fiscal year is less than 8.5%, the cost of living adjustment will be capped at 1.5%. 

For members who join the system on or after July 1, 2007, the cost of living adjustment will be based on the Social Security cost of living and the investment performance of the retirement fund for the prior fiscal year subject to a maximum of 5%.  If the investment performance of the retirement fund is less than 8.5%, the cost of living adjustment will be capped at 1%.  If the investment performance of the retirement fund for the prior fiscal year is between 8.5% and 11.5%, the cost of living will be capped at 3%.  If the investment performance of the retirement fund is over 11.5%, the cost of living will be capped at 5%. 

The COLA will increase a memberís taxable income.  Members may change their federal withholding tax by submitting a Federal Tax Withholding Change Form (PDF 48KB). Members may change their state withholding tax by submitting a Connecticut Withholding Change Form (PDF 113KB).

For members who chose the extra annuity option for their Supplemental and/or Voluntary Account balance at retirement, the COLA does not apply to the annuity portion of the retirement benefit.

A history of the  Cost of Living Adjustments Granted From 1978 (PDF 39KB) is available on the Statistics and Research page of this website.

Refer to the Cost of Living Adjustments Bulletin (PDF 31KB) for further information on this topic.




Content Last Modified on 11/15/2018 12:42:48 PM