TRB: Cost of Living Adjustments - July, 2013

Cost of Living Adjustments - July, 2013

 
Based on the statutes governing Cost of Living Adjustments (COLA) for CTRB members, members who retired on or after September 1, 1992, shall be eligible for an annual cost of living allowance 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.  If the investment performance of the retirement fund is less than 8.5%, the cost of living adjustment will be capped at 1.5%.
 
Social Security has announced that they will be granting a cost of living increase of 1.7% for the year 2013 but the investment performance of the fund was less than 8.5% this year.  The COLA will be capped at 1.5% in 2013 for members who retired on or after September 1, 1992.
 
Members who retired prior to September, 1992 and who receive their annual cost of living adjustment in July (not January) will receive an increase of 3% based on the National Consumer Price Index for the twelve month period ending on May 31, 2012.
   

The COLA will increase a memberís taxable income.  Members may change their federal or state withholding tax by submitting a Federal and CT Tax Withholding Change Form (PDF 271KB).

 

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 6/26/2013 12:51:32 PM