The Inactive COLA (cost of living increase) applies to the HAPC (highest average plan compensation) component in the retirement formula for ‘inactive’ UCRP 1976 Tier members and is conferred annually on July 1.

For a 1976 Tier member retiring on July 1 just one business day of separation is required immediately prior to July 1 of that year to prompt the Inactive COLA – the COLA increases a member’s retirement income immediately as they retire! This year, the Inactive COLA is 2% and employees retiring on July 1 must separate from employment on June 27, 2019, to receive the Inactive COLA. A separation date of June 28, June 29 or June 30, 2019 will not prompt COLA.   

The Retiree COLA applies to a retiree’s 'monthly retirement income'. The adjustment takes place every July 1 and a retiree must be retired for twelve months as of July 1 to be eligible for their initial retiree COLA. For example if an employee elects to retire on July 1, 2019, the retiree COLA adjustment will take place on July 1, 2020, whereas if an employee retirees on July 2, 2019 or later in 2019, the first retiree COLA adjustment will not take place until July 2021.

If you have questions, please contact benefits.