Proposal has more effect on those close to retirement
By Kristen Dohrmann, Ohio Public Employees Retirement System
Dec. 20, 2019 — You may have read in a recent Board Report or PERSpective blog article, that in September the OPERS Board of Trustees approved changes to the cost-of-living adjustment and is now seeking legislative approval. If you are planning to retire in 2020 or 2021, these changes could impact when you receive your first cost-of-living adjustment.
Current rule: All retirees must wait 12 months from their retirement anniversary date to receive their first cost-of-living adjustment.
Board-approved changes: The Board approved a cost-of-living adjustment two-year suspension beginning in 2022. That means all retirees would not receive a cost-of-living adjustment in 2022 or 2023, and then the cost-of-living adjustment would be re-instated in 2024 on each retiree’s retirement anniversary date. Members who retire in 2022 and later would receive their first cost-of-living adjustment 24 months after their retirement date, on their second retirement anniversary.
These changes may impact you differently, depending on your retirement date. The biggest impact is to those retiring in 2021 because they’ll be under the current conditions (12-month wait) and the two-year suspension. They will go 36 months from their retirement date until their first cost-of-living adjustment.
If you’re planning to retire in 2020 or 2021, you are strongly encouraged to schedule a retirement counseling session with one of our counselors. They can help you determine exactly how this change could impact you.