Eligible Benefit Recipients to Receive 2% COLA in January 2024
At the October 30, 2023 meeting of the PSRS/PEERS Board of Trustees, the Board voted to provide a 2% cost-of-living adjustment (COLA) for eligible benefit recipients effective January 1, 2024.
The COLA decision is based in part on the Board’s current COLA policy, which takes into consideration the increase in the Consumer Price Index for Urban Consumers (CPI-U) as determined by the U.S. Bureau of Labor Statistics for the previous fiscal year, as well as the recommendation of the Systems’ actuary, PricewaterhouseCoopers (PwC). The total increase in the CPI-U for the 12 months in fiscal year 2023 (July 1, 2022 to June 30, 2023) was 2.9692%.
According to the COLA policy, when the increase in the CPI-U during the measurement period is between 2% and 5%, a 2% COLA is given.
PwC performs an annual actuarial valuation of the Systems each year and presents it to the Board at the October meeting. It includes a detailed look at factors that impact the funded status of the Systems. This information is studied by the Trustees and used in making financial and funding decisions.
It is the Board’s fiduciary responsibility to the Systems and members to make decisions that are consistent with maintaining the Systems’ ongoing financial health and strong funded status.
“The Board understands the financial pressures exerted upon our members during this time of high inflation,” said PSRS/PEERS Board Chair Dr. Jason Steliga. “The ability to provide a COLA is in line with our mission to provide a benefit that can provide peace of mind to our membership.”