Inflation-based adjustment to be 2.3%, based on government statistics
By Michael Pramik, Ohio Public Employees Retirement System
July 20, 2023 – Cost-of-living adjustments for OPERS members in 2024 will be either 3 percent or 2.3 percent, depending on when members began receiving a benefit.
Those with a benefit effective date prior to Jan. 7, 2013, automatically receive a 3 percent adjustment. Those with an effective date 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 from the end of June 2022 to the end of June this year, with a maximum adjustment of 3 percent. The U.S. Bureau of Labor Statistics reports that the CPI-W increased 2.3 percent over that period, so OPERS’ CPI-based COLA for 2024 will be 2.3 percent. For reference, click on “CPI-W, June 2023” on this page of the Bureau of Labor Statistics website and refer to cell AD-7 in the spreadsheet.
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.
The adjustment is calculated on the benefit recipient’s original monthly benefit and is paid on the anniversary of their benefit effective date. COLAs will be paid next year to those with a benefit effective date of Dec. 1, 2023, or earlier.