Amber. If you are a school district employee who works less than 12 months in a school year, your service credit and salary will be displayed based on September of one year through August of the next year. Details are provided below on upcoming, current and the prior biennium as well as primary financial information systems used in the budgeting process. Copyright 2023 Asset International, Inc. All Rights Reserved. /Note: Monthly Pension checks are dated and mailed on these dates. Because PERSs investment returns, prospects and risks are matters of voter and public interest, PERSs first transparency and accountability duties are owed primarily to those parties and PERS members. A Survivor Beneficiary applies to both married and single members who have not retired. If you are under the Employer-Pay Contribution Plan, your portion of the increase will either be paid through salary reduction or in lieu of a pay increase depending on the employer for whom you work. December 31 vs. January 1. For more information about your account you can either contact our office by phone or submit questions through the Message Center in your OPERS online account. The bad, PERS's lack of transparency and accountability, is ironic considering its fine investment management processes and results. <> Forms received by the 14th of the month will take effect the same month. The Official State of Nevada Website | Copyright 2021 State of Nevada - All Rights Reserved, HRM Listserv Email Subscription Management, Public Information Requests and Fee Schedule, Compensation, Classification & Recruitment, Sex- or Gender-Based Harassment Discrimination, 7.000-Financial Management & Staff Services, 10.000-Medical, Health & Related Services, PP01 - Classified Employee/Employer Pay Contribution Plan (pdf), PP01A - CBA Classified Employee/Employer Pay Contribution Plan (pdf), PP02 - Classified on Employer Pay Contribution Plan (pdf), PP02A - CBA Classified on Employer Pay Contribution Plan (pdf), PP03 - Classified on Police/Fire Employer Contribution Plan (pdf), PP03A - CBA Classified on Police/Fire Employer Contribution Plan (pdf), PP06 - Classified Medical Employees on Employee/Employer Paid Retirement (pdf), PP07 - Classified Medical Employees on Employer Paid Retirement (pdf), PP08 - Classified 24-Hour Shift Firefighters on Police-Fire Employee/Employer Pay Contribution Plan (pdf), PP09 - Classified 24-Hour Shift Firefighters on Police-Fire Employer Pay Contribution Plan (pdf), PP10 - Unclassified Employees on Employee/Employer Paid Retirement (pdf), PP11 - Unclassified Employees on Employer Paid Retirement (pdf), PP12 - Unclassified Employees on Police-Fire Employer Paid Retirement (pdf). The OPERS COLA is a simple adjustment, meaning its always based on your initial pension benefit and not your initial benefit plus accumulated allowances. Regardless of which plan you are under, you share equally in the PERS contribution rate and there is no difference in how your monthly benefit will be calculated. If I retired in March of 2022 will I get the 3% ? We post these dates for the calendar year through myCalPERS. All of a sudden the market collapses and opers is in the red for the next 30 years. Below we have listed the eligibility requirements for retirement based on when you were first enrolled in PERS: Part-time members of PERS earn service credit based on the percentage of full-time hours they work. Taxpayers and future employees are the residual holders of PERSs fiduciary risks. Your PERS benefit is not affected by Social Security. X\rJ1C_00+f{Uv9X>L++n$zm{k)^gdb:.m. "gD$dgEfK&$TaYy-*>b:#p5Q!sB@~7-HAeFO2 f4 endobj endobj 08/28/2023. Members may reach the 75% Service Time Factor before completing 30 years of service. Its great were getting a cola, but Id rather they passed this now than later. 89K views 4 years ago CalPERS Quick Tips The Cost-of-Living Adjustment, or COLA, is a benefit that ensures your value of money at retirement keeps up with the rate of inflation. U.S. stocks account for 40.2% of the assets, while U.S. bonds and international stocks account for 26.8% and 16.8% of the portfolio, respectively. ]{Q%HKSd!d`HI=F2GYO$ciRgeY(A4)$[fvx .mv~9&8mhHv?kS Missouri law states that a 5% COLA must be granted when the CPI-U equals or exceeds 5%, as does the PSRS/PEERS funding policy. At this moment, members do not receive a COLA until their first effective date anniversary. The OPERS COLA is based on a retiree's initial pension benefit. Working longer generally leads to a higher pension benefit, but to be sure call us or use our Benefit Estimator. The OPERS Board of Trustees approved a proposal last year to suspend the COLA for 2022 and 2023, then return the adjustment to current levels. I didnt get any COLA raise. Federal employees in the US will receive an average pay rise of 2.7 percent on January 1, 2022, including the amount set aside for locality pay. An agreement will be mailed to you within 10-14 business days. The COLA proposal calls for two future years of COLAs to be frozen. Box 5 represents the amount of your benefit received that year that is not subject to taxes based on the non-taxable employee contributions you paid to the system prior to your retirement. Clark County Prosecutors Association. 1These premiums cover all Kaiser out-of-state areas. Weve explained this further in another comment on this blog. The COLA for everyone next year will be 3 percent. Jan 31: Feb 28: Mar 31: Apr 29: May 31 . Active members may also change their address online by logging into their account and clicking the "Address & Phone Number" link. However, if you take a PLOP, would the COLA be based on the initial benefit amount or the initial benefit amount minus the PLOP amount. How was that number arrived at? This adjustment is based on the Consumer Price Index (CPI), and offers a maximum increase or decrease of 3% each year. PERS improve our member . OPERS has communicated that the Cost-of-living adjustments for OPERS members in 2022 will be 3 percent for all those eligible to receive the annual benefit increase. There is a shockingly high 14.5% . That figure would include all of the cumulative COLAs we have issued, when compared with just the initial pension benefit. CPI inflation has been 4.6% since the last state COLA in July 2019. COLAs are paid on the anniversary of a retirees effective date. If you die as an active member, PERS statute determines the eligibility of benefits payable to your survivors. <>/ExtGState<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 9 0 R 10 0 R 15 0 R 25 0 R] /MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Do I get half of his COLA next May, 2023? Serves TRS, PERS, SERS . No mention of differant groups or classes. Thank you. THANKS MikeIt cant be clearer than that! According to the Public Employee Retirement System of Nevada (PERS), public employees split a 29.5% of pay contribution with their employers, with the employee picking up 15.25% of the tab. The inflation-based adjustment is capped at 3.0 percent. Let me ask the question in a different way and from my perspective. Due to our pre-notification process, you may receive your monthly check by mail for that month only, and then the following month, we will direct deposit your benefit into the new bank account. Ph 330 393 5595. You cannot change from the Unmodified Option 1 benefit to any other plan after you have retired. Reading your replies here I have a couple of questions and need a clarification. PERS Plan 1 and TRS Plan 1 retirees who were receiving a monthly benefit on July 1, 2021 will . Approximately 70 million Americans will see a 5.9% increase in their Social Security benefits and Supplemental Security Income (SSI) payments in 2022. With that being said, prudent planning has positioned OPERS to allow the offering of a meaningful health care component for career employees. To see your cost-of-living adjustment (COLA), view your benefit and tax statements online. On the anniversary of your retirement effective date. If I retire by December 1st, the 3% COLA for me would be $159. March 16 NAIOP Southern Nevada Breakfast Presents Land of Opportunity: Development in the Outskirts, Smartphone 101, Tai Chi Among Featured Free Events at Optum Care Community Centers During March, Lexicon Bank Features Friendship Circle as Its March Community Spotlight, Sleep Dentistry Practice Opens in Henderson With Noninvasive Therapies to Tackle Sleep Apnea, Snell & Wilmer Welcomes Caylye Nordling to the Las Vegas Office, The National Council of Juvenile and Family Court Judges Announces Record $16.7 Million in Awards to Assist Children and Families, Optum Cancer Care Has Added Two New Providers, KPS3 Welcomes Lauren Hober as Account Manager, GoCar Tours Announces Grand Opening of Las Vegas Location and First Demos of Driverless All-Electric, Holley Driggs, Ltd. Member Statements are issued in yearly cycles for each of the public employers. If you terminate employment, you may elect to refund the employee contributions you personally paid into the system, which will cancel your membership in PERS. A Nevada PERS joint budget committee last week approved a budget that includes the creation of an additional investment officer to join Steve Edmundson, who is currently the pension fund's CIO and lone investment office employee, according to The Nevada Independent, a nonprofit news organization. As weve stated before, state law requires OPERS to cap its inflation-based COLA at 3 percent. If you have been paying for your purchase through a payroll deduction, you will be responsible for notifying your payroll office to stop the deduction. We will confirm how you plan to pay for the purchase at that time. How does a COLA capped at 3 percent add 25% to the yearly pension cost? No. Direct Deposit 2022. One day can make a big difference. However, for 2022 it is projected to be radically different. Its allocations to U.S. stocks and bonds and international stocks, 88.2 percent of its total portfolio, are fully invested according to appropriate indexes and have earned the same returns as those indexes. You would qualify for an adjustment beginning in December 2023. something is amiss here and business has benefitted. The executive director of PERS says. Cost-of-Living Adjustments (COLAs) for DRS-administered retirement systems and plans that receive a COLA have been established for 2021. The average monthly payment to KPERS' retirees is $1,200. 2015 Compensation Schedules. As a result of legislation approved in 2022, certain retirees in Plan 1 of the Public Employees' Retirement System and Plan 1 of the Teachers' Retirement System (PERS 1 and TRS 1) will receive a one-time benefit increase in July of this year. For most retirees and beneficiaries, the increase will amount to a 2 percent cost-of-living-adjustment. For those who will initially receive their adjustment in December 2022, the 3 percent COLA will apply through November 2023. COLAs will be paid next year to those with a retirement effective date of Dec. 1, 2021, or earlier. A COLA is an adjustment to your monthly benefit after you retire. When you are ready to repay the refund, you must request a Repayment Agreement from the PERS office which will list the conditions of your repayment. No more than 12 months in a year can be credited to your account. That means the COLA for any particular year will be initially granted on Nov. 1 for that retiree. The 5.9 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 64 million Social . May 31: Jun 30: Jul 31: Aug 31: Sep 29: Oct 31: Nov 30: Dec 29: Cost-of-Living Adjustment COLA. COLAs begin on your retirement effective date, not at the beginning of the year, unless thats your retirement effective date. If that gross was $10,000, cola would be $300. Beginning with the month that youre eligible for the COLA, your benefit check will increase by the appropriate percentage as applied to your initial benefit, and will remain at that amount until the next COLA. The retiree would receive an additional $30 each month for 12 months, vs. $360 in a lump sum. Retirees whose effective date of retirement is on or after Jan. 7, 2013, are scheduled to have next year's COLA based . Employees covered under Bargaining Units A, E, F, H, I, & K will receive a COLA equal to three percent (3%). Retirees may change their mailing address in writing or changed by the retiree on the PERS website through their secure account. I retired December 1, 2020. If that wasnt January, thats why you didnt see an adjustment in your January benefit payment. The state sets specific windows when teachers can retire with benefits based on age and years of experience. heres the link: https://www.bls.gov/news.release/cpi.nr0.htm. Retirees under the Civil Service Retirement System (CSRS) will receive a 5.9 percent increase while those under the Federal Employee Retirement System (FERS) will see their monthly pensions adjusted by 4.9 percent starting with January 2022 payments. For all other plans that are eligible for a COLA . With Guest Harpist, Renewed Commitment to the Epicenter for Judicial Education at University of Nevada, Reno, Edawn Invites Local Entrepreneurs to Pitch Start-Ups, Dickson Commercial Group Announces the Promotion of Nick Knecht, CCIM to Vice President, Congratulations 2022 Colliers Everst Award Winners, My Hometown Heroes to Host Poker Tournament on March 24, The Crime Solver, Danny Minor to Scale the Strat, Raise Money for American Lung Association, Celebrate Black History Month: Black in Vegas Viewing Party With Clint Holmes, Featured on the ABC Special, on February 22 at the Stirling Club, Pacific West Injury Creates Upside Down Billboard Campaign to Create Awareness for Accident Victim, CALV Supporting Nevada Partnership for Homeless Youth With Donations, Volunteering to Renovate Residences for Local Teens, Mark Twain Days Coming to Carson City in April, Drug-Free Depression Treatment Now Available in Reno, Catholic Charities Seeking Easter Basket Donations for Local Children in Need, SANDI And NCLab Announce Manufacturing Employee Recruitment Initiative, Dickson Commercial Group Completes MidTown Restaurant and Business Sale, Junior Achievement of Southern Nevada Announces New Board Member Elizabeth Delgado From Every Season Wealth Management, Project 150 Holds Its Annual Las Vegas Prom Closet on March 4, Broadbent & Associates Attend 2023 Nevada Water Resource Association Annual Conference, Eight Local Organ Donors and Their Families Recognized During Special Ceremony on National Donor Day, Dickson Commercial Group Expands Company Footprint in Downtown Reno Office, Project 150 Receives $250,000 Donation From the Frias Charitable Trust to Support Local High School Students, Celebrate Spring With Chef Charlie Palmer at Grand Sierra Resort, Nevada State Contractors Board to Hold 2023 Hammers & Hope Event in Las Vegas, Hb Build Partners With Interior Construction Leader Falkbuilt, Special Olympics Nevada Delegates to Champion for Inclusion and Need for Critical Funding on Capitol Hill, Faith Lutheran Offers Flexible Learning Options With Launch of Faith Lutheran Online for 2023-24 Academic Year Faith Lutheran Online Students Eligible to Participate in Sports and Extracurricular Activities, Safenest Hosts Inaugural Advocate Conference Unpacking the Teenage Brain Will Explore Resources and Solutions for Preventing Violence & Victimization Before It Starts, Southwest Medical Adds New Healthcare Provider, REMSA Health Announces Adam Heinz as COO and Devan Walker as CFO, College of Southern Nevada to Host Mental Health Conference on April 14, Nevada Donor Network Partners With Compassioncare Hospice & YMCA Southern Nevada to Host Day of Heroes in Honor of National Donor Day on Feb. 14, Contractors Board Welcomes David Behar as Director of Investigations, Aaron Ford II Joins Government Relations Firm TriStrategies, CAMCO Hosts Its 3rd Annual Girl Scout Cookie Party on Valentines Day to Benefit Troop #760 and Munchies 4 the Military, Optum Care Allergy Care Adds New Location, Goodwill of Southern Nevada Adds Executive to Lead Programs of Service, After A Successful, Sold-Out First Debut: Winnie & Ethels Downtown Diner Is Hosting Their Second 2023 Dinner Pop-Up Experience, Best Buddies Volunteer and Teacher Named December Community Smiles Winner of Move 4 Less Recognition Program, Ryder Homes Unveils New Model Homes at Shadow Hills, a Spacious Spanish Springs Community in the Harris Ranch Master-Plan, February is National Childrens Dental Health Month, Nevada Moms Join Forces to Fundraise for Charity and Better the Community, Craig Drummond News 3 Las Vegas Salute Our Troops Recipient, Dickson Commercial Group Announces the Promotion of Chris Shanks, CCIM to Senior Vice President, New Las Vegas Dental Office Provides Compassionate Care for the Underserved Special Needs Population, Feb. 16 NAIOP Southern Nevada Breakfast Presents Show Me the Money, Henderson Symphony Orchestra Announces Winners of 2023 Young Artists Competition, Broadbent & Associates, Inc. Launches Upgraded Website, Roundabout Announces Ownership of Franco Baking Company, LVR Reports Home Prices and Sales Falling to Start 2023, Rainbow Club Casino to Host Paired Beer Dinner, Enjoy a Variety of Globally Inspired Cuisine at JING Las Vegas for the Big Game and Valentines Day, Watch the Big Game and Celebrate With Axs and Os for Galentines and Valentines Day at Dueling Axes Las Vegas This February, Project 150 Adding Second Las Vegas Location to Expand Services for Local High School Students in Need, Colliers Brokers Sale of 237,630 SF West Henderson Industrial Development, Lexicon Bank Appoints Amanda Klein to Vice President of Marketing, LP Insurance Services Announces New Members/Owners, Minority Health Consultants Co-sponsors Feb. 7 Black HIV/Aids Awareness Day Event, Broadbent & Associates, Inc. If you have created an online account you will be able to view your pension information, see and manage your account information, and more. Chief among them was the unforeseen Great Recession, which in one year reduced our defined benefit portfolio by more than 27 percent. The COLA is applied monthly, beginning with month of your retirement effective date. OPERS recipients increase will be 3% which is nice but with the high cost of living increase, we will be in the negative. You may request a verification of your benefits by contacting PERS Customer Service. 11/27/2023. The type of COLA you are eligible for depends on your retirement system and plan. If your beneficiary under one of the Options 2 through 7 predecease you, your monthly benefit would be adjusted to the higher Unmodified Option 1 benefit at the beginning of the next month upon receipt of a certified copy of your beneficiary's death certificate. My ex retired in May, 2022. On average, the cost for a one year purchase is approximately one-third of your annual salary. +j5f_%6+UKcx\`Lx$L}M`*)z(`jxwkJCp[Z1SVQbP1wkf K.Xa,yamE$ It would not affect past adjustments. Log into your account and click on "Account". The result of that calculation is 8.003%, which is the percentage of increase from 2021 and 2022. You will need to complete, sign, and return the Verification Code Request Form before creating your online account. You may purchase as little as one day or any combination of years, months and days provided it doesn't exceed the five year maximum. Filed Under: Free Market Watch Tagged With: Nevada PERS, Nevada Public Employees Retirement System (PERS), Copyright 2022, Business Link LLC dba Nevada Business Magazine and Nevada Business Journal. The percentage is calculated for each member based on the years, months . How does Opers determine the cpi-w that is used for each years cola? If any of your beneficiaries have the relationship of "Survivor Beneficiary", this would indicate that a form was properly completed and is on file at the PERS office. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Your email address will not be published. COLAs are granted beginning with the month of your retirement effective date. I also have another question I am part of retirement Group A and my monthly benefit amount is being reduced. Y?GO*S'a_Id/cEfmXNj?B*_^BSvHxn>l;1;hp/2sMq}$5QB $eRW',sMs&pJ 55E:i0ywK~y {Jx0/=Kepu^N~Ld]#oG _5Z^_7" X!Uxrw}G|iY^JCm "G.0` :x]3u`kxnPg; IqkgX3?6O0O |p^$~rOprX8T>sqW(K\-n&|= Modern investment theory counsels that, in investments, one cannot expect to beat a market by consistently reaping above-market-average returns and one can lose a lot of money by trying. The earlier you notify PERS, the better. How Does Cpap Reduce Preload, Balsamic Moon Relationships, Black Rock Beach Cohasset, Mercury Trine Neptune, Lumbar Spine Spot View Angle, Lincoln Hornets Basketball, nevada pers cola 2022madison county launchpad. If you do not already have an online account, you may register from the upper right-hand corner of OPERS website. Meanwhile, private equity and private real estate were the top-performing asset classes for the pension fund, returning 23.3% and 19.6%, respectively. Maxing out at 3% (whats inflation???). Ohio STRS Loses 9.52% in 2022, Board Rejects Neville Vote of Confidence, Stocks, BondsHah! You may also make this change yourself through your PERS secure, on-line account. Spoke w representative about cola. If your retirement date is December 31, 2022, your COLA would be based on the Consumer Price Index for 2023, and you would receive your first COLA in May 2024. Ty, Under the Employer Pay Plan (ER Paid or EPC), the employee pays for their portion of the contribution through a salary reduction or in lieu of pay increase and the employer pays 100% of the retirement contributions to PERS. Those whose retirement effective date is prior to Jan. 7, 2013, will continue to receive a 3 percent adjustment. 2011 Compensation Schedules. Vesting also occurs at other time periods such as 10, 20, 25 and 30 years, which makes you eligible to receive benefits earlier than age 65. What is the calculation used to determine each new cola? The average of a member's 36 highest consecutive months of compensation as certified by the public employer. The COLA for 2022 is expected to be 6.0% . The Nevada Public Employees Retirement Systems investment portfolio lost 5.1% for the fiscal year that ended June 30, as its asset value declined to $54.3 billion from $59.4 billion a year earlier. Whether a PERS-participating employer hires you, or places any limits on you as a PERS retiree, is between you and your employer. Please call us at 800-222-7377 for questions about your benefit amount. We announced the formation of Group B in 2012, and its creation was never predicated on eliminating the COLA. If $5,300 is the annual pension benefit, then the $159 adjustment would be an annual amount. July 16, 2021 - Cost-of-living adjustments for OPERS members in 2022 will be 3 percent for all those eligible to receive the annual benefit increase. Evidently many asking same question as there is a 3 1/2 to 5 hour wait to speak to them! The employer contribution can be changed only by the Ohio legislature. Typically, this benefit begins the second calendar year of retirement, although the annual rate of inflation and retirement law could affect the onset of your COLA. Youll receive that adjustment through November 2023. and the feds get 5.9 and inflation is what?? 06/16/2022 . Is this a mistake and who do I contact to rectify this? Thank you Michael. Nevada has a 5 year vesting period. For example, if you work full-time for a traditional 9-month school year, you will earn one full year (12 months) of service credit when the 4/3rds credit is applied to your account. I am very happy about this. For the purposes of accessing an account online, this description is used to indicate the surviving child, who is still a minor, of a member who passed away prior to retirement. If you are a PERS member receiving a monthly pension benefit, you will soon see an increase in your benefit payments due to the annual cost-of-living adjustment (COLA). The COLA is based on the original, first year, retirement benefit. We also recommend you contact one of our offices to request an estimate of benefits and the disability retirement packet. School district employees who work less than 12 months in a school year, earn a day and a third for each day worked. Members who are planning to purchase service and then immediately retire have additional deadlines to meet in order to purchase service. Your agreement will include specific instructions and the terms of the contract. If you have not previously created an online account, click here to get started. I got the 3% for 4 years. 2+ X=J8$d, +]% nLpYN37T3mOnIHg4/e#Hy rn)\l@eF.)(,$kXYh2mviE8Q7at.e+o@D 8u0rMe)y>1]pUhi71pHoI y?rTp E96sL/ <>/Metadata 109 0 R/ViewerPreferences 110 0 R>> Ron Knecht is Senior Policy Fellow at Nevada Policy Research Institute. The CPI-based COLA for 2022 is 3 percent (the maximum allowable under Ohio law), and thus all retirees, regardless of effective retirement date, will receive a 3 percent COLA in 2022. PERS Home Page | NVPERS Public Employees' Retirement System of Nevada Dedicated to those who serve Nevada Active Members Benefit Recipients Employers & Vendors Important Updates Contribution Rates Effective July 1, 2023 Explanation of your 1099-R Tax Statement IRS to Begin Using Updated Form W-4P in 2023 View Employment Opportunities This is due to the elimination of cost-of-living adjustments (COLA). 7 :#O"~2h7}xF@cKa' In this public records request matter, the Supreme Court held that the Nevada Public Records Act requires the Public Employees' Retirement System of Nevada (PERS) to disclose certain employment and pension payment information held in its computer database about its government retirees where the requested information merely requires searching a database for existing information, is readily . So, PERS should maximize the data detail it discloses, subject to redacting minimal information that would identify its individual members. Specific rules apply to school district employees. CalPERS determines your COLA percentage by comparing the actual rate of inflation (based on the U.S. City Average) to your 2%, 3%, 4%, or 5% adjustment. The change became effective July 1, 1985. The service credit you earned as of the date you stopped working will remain in the System. tD@lR RD_gmgW_ywF Members newly enrolled in PERS on or after January 1, 2010, receive 2.5% for all service earned in the system. How far in advance can you use deferred comp to pay off the remainder of my five year military for retirement. These forms may be completed by simply selecting the form below. Nevada PERS also reported three-, five- and 10-year annualized returns of 9.0%, 8.8% and 9.2%, respectively, beating its benchmark, which returned 7.1%, 7.6% and 8.6%, respectively, during the same time periods. Moreover, educators can't begin to collect it until they hit the state's retirement age. stream . Counselors are available to assist you in completing your application in both our Carson City and Las Vegas offices, or you may mail in your completed application directly to our Carson City office. If you are a retiree or beneficiary of the Public Employees Retirement System of Nevada it is important to stay informed about your retirement system. A refund of employee contributions will cancel your membership in the system and all rights to a retirement benefit, including survivor and disability benefits. A COLA of greater than one percent is subject to legislative approval. The website video says my effective date of retirement can be last day of work or last pay date but 1st of month is preferred. Missouri state statute states the COLA amount will be 80% of the percentage increase in the CPI-U. But to be sure and to do its duty, it needs to come clean with all data except personal identification details. July 16, 2021 Cost-of-living adjustments for OPERS members in 2022 will be 3 percent for all those eligible to receive the annual benefit increase. The COLA is tied to the change to the Consumer Price Index (CPI-U) for the twelve months ending the previous August. For example, if you work exactly half-time for one calendar year, you earn six months of service credit.