OPERS announces COLA amount for 2023
All eligible retirees will receive a 3% cost-of-living adjustment
By Michael Pramik, Ohio Public Employees Retirement System
July 29, 2022 – Cost-of-living adjustments for OPERS members in 2023 will be 3 percent for all those eligible to receive the annual benefit increase.
The OPERS COLA is based on a retiree’s initial pension benefit. COLAs will be paid next year to those with a retirement effective date of Dec. 1, 2022, or earlier. COLAs are paid on the anniversary of a retiree’s effective date.
While members with a retirement effective date prior to Jan. 7, 2013, automatically receive a 3 percent adjustment, those with a retirement effective date on or after that date have their COLAs based on the Consumer Price Index-W, the government’s inflation index for urban wage earners and clerical workers.
According to state law, the annual COLA for those retirees is to be based on the change in the CPI-W index from the end of June 2021 to the end of June this year, with a maximum adjustment of 3 percent. With inflation exceeding 3 percent during that period, according to recently released statistics, OPERS’ CPI-based COLA next year will be 3 percent.
OPERS’ inflation-based COLA uses the same index as Social Security. But the time period measured is different, so the adjustments might not always match up.
Michael Pramik
Michael Pramik is communication strategist for the Ohio Public Employees Retirement System and editor of the PERSpective blog. As an experienced business journalist, he clarifies complex pension policies and helps members make smart choices to secure their retirement.
Thank you Opers !! You truly work for your retirees.
Will opers change to the same cpi that SS is changing to to calculate colas going forward? Thank you
Jim,
There have been calls over the years for Social Security to change its methodology in determining its COLA. We have not seen any proposal that has gained enough support to move Social Security away from its use of the CPI-W. If it does at some point in the future, there is no obligation for OPERS to change the way we set the inflation-based COLA.
When does the 3% show in my retirement for 2023
I’ve received my Jan 2023 deposit and it does not reflect my increase?
Carol,
COLAs are paid upon the anniversary of your retirement effective date, which is the month after you stopped working.
Social Security is giving an
8.7% increase in 2023. Why isn’t OPERS doing the same?
Barbara,
Ohio law caps at 3 percent the amount of inflation-based COLA we can provide.
No!! 9.5%
Mary,
The Social Security COLA will be 8.7 percent for 2023.
3% again and S S gets 8.7 please tell me it’s wrong
Rebecca if you read the information OPERS provides you will see our CPI is capped at 3% annually. OPERS does a fantastic job of managing our pension and hopefully you can do some research to understand OPERS continued fiscal responsibility. This fund needs to last your entire lifetime. If you look at what your total amount paid into the pension vs. what you have received you will notice you are getting far more than you ever invested. I think it is also important to note, how many times in your career did you ever receive a raise over 3%? I know in my position at Ohio State most of my raises were less than 3% on average.
So you no longer have to wait a year before you receive COLA?
Jefferson,
As stated in the blog, COLAs are paid on the anniversary of a retiree’s effective date of retirement. Thus, a new retiree would receive the first COLA one year after retiring.
Many STRS retirees receive no COLA. That puts them far behind in earning power.
It looks like 3% for all for quite a bit of time…..at 10% inflation it is over 3X that rate…looks like the lower of CPI-W or 3% won’t have the impact hopes for by OPERS which was to reduce COLAs of later retirees….what will be next, eliminating COLA? Also, ending spouses health benefits seems to just make employees work longer as need to wait for spouse to be Medicare eligible… what impact does that have?
We appreciate these OPERS updates!
What about pension received as a beneficiary of a spouse who died? Will there b a 3% cola added to that retirement?
Yes, the beneficiary receiving a monthly survivor benefit will be eligible for a COLA increase each year.
Shouldn’t you also state that the COLA is not “rolled in” to your retirement wages but is instead based solely on your retirement wage at the time of your retirement thus making the COLA significantly less than 3% for anyone retired for 10 years or more.
John,
It’s correct that the adjustment is a simple COLA and not a compound COLA, meaning it’s based on your initial retirement amount.
Thank you OPERS for the COLA. Much appreciated.
I retired in December 2014, what is my percentage for COLA?
Rene,
The COLA for all eligible retirees will be 3 percent next year.
Thank You OPERS for the COLA increase.
Is there a COLA for those retiring after 12/1/22?
April,
Our current benefit plan provides an annual cost-of-living adjustment to retirees beginning one year after their effective date of retirement.
So question Michael. Does that mean a person who retires December 1, 2022 will not receive their COLA until December 1, 2023? And will it be Retroactive to January 1, 2023 or only apply moving forward>
Linda,
Someone who retires Dec. 1 receives the first COLA the following Dec. 1. It can’t be retroactive — it’s an annual increase beginning on the effective retirement date. A retiree can’t receive the first annual increase until a year passes.
Nothing but positive thoughts for OPERS! The HRA is also a wonderful incentive. Retired last year after 31 years of public service & don’t regret a day. Thank you!!!!
Good news. It will help as we are all trying to keep our heads above water during these inflationary times. Thank you.
Thanks Opers, for our cola.
I think you may have answered my question already but want to be sure. My wife is in group b with over 31 years of eligible service. I’ve seen in the past that there is a one year waiting period for cola increases. If she retires before the deadline will she get the cola increase?
Steve,
There is no deadline for the one-year waiting period for COLAs. It’s an annual adjustment, so the first one is available on the first anniversary of the retirement effective date.
Is there any benefit to retiring 11/30/22 as opposed to 12/31/22 with respect to COLA?
Jamie,
Those who end their employment on Nov. 30, 2022, have Dec. 1, 2022, as their effective date of retirement (the first of the month after their last day of work). That means their initial COLA would begin Dec. 1, 2023. The same concept applies to someone retiring on Dec. 31, 2022. The effective date of retirement would be Jan. 1, 2023, and the initial COLA would begin Jan. 1, 2024. There is only one month’s difference between the date of the initial COLA, just as there is one month’s difference in the retirement date.
Because someone retiring in 2022 would have their COLA amount tied to inflation, there could be a different amount of adjustment in 2024 as there will be in 2023. We’ve already announced that the 2023 COLA will be 3.0 percent. Would the current inflation-based COLA be 3.0 percent in 2024 as well? Yes, unless inflation were to measurably decline in 2023.
My 1st Cola I received in 2021 was .5%. but it was 3% in 2022 and 3% in 2023. But because inflation was around 6% last year and 10% this year and .5 in 2020 since we have a cap of 3% unlike social security shouldn’t we have minimum amount of 1.5% or something that we should receive since we have a 3% upper cap. Three year average inflammation during this time was around 5.5% but unfortunately it didn’t go up equally each year so we could get the 3% each year
Thank you all for your continued great work on our behalf. I am still hoping we can get our legislature to revoke the automatic 3% for all those that retired prior to 2013. We need to all work together to ensure the health of OPERS and this is one way to do it. If there is any thing I can ever do to support this measure please let me know. I would happily right to our legislators to revoke the automatic 3%.
The outcome of an event is based on the rules in effect at the moment the event ends. You can’t change the rules after the outcome is established to get a different result, it’s over.
Does the COLA 3% go to those who receive disability. I had a brain tumor and had to leave work and take disability. Even though we worked until something unforeseen happened to us we are not really included as retirees.
Regina,
Yes, but only after the disability benefit recipient retires.
I have read and don’t agree with the 3% either. When I first got approved, I had to keep calling back to make sure I understand what I was getting ready to endure; disabled through my employer but not disabled through social security administration – One OPER’s representative said the amount would be the same as social security; just stating facts. All of my hard-earned work that I put into the company I worked for, there need to be a thorough job prior to someone leaving their job especially with inflation on the rise. Though, now being thankful for what I have thus far, as long as it has been said and may others continue to make comments because it’s getting me by, and it’ll come in handy for folks like me.