OPERS announces COLA for 2025
Inflation-based adjustment to be 2.9%, based on government statistics
By Michael Pramik, Ohio Public Employees Retirement System
July 18, 2024 – Cost-of-living adjustments for OPERS members in 2025 will be either 3% or 2.9%, depending on when members began receiving a benefit.
While those with a benefit effective date prior to Jan. 7, 2013, automatically receive a 3% 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 2023 to the end of June this year, with a maximum adjustment of 3%. The U.S. Bureau of Labor Statistics reports that the CPI-W increased 2.9% over that period, so OPERS’ CPI-based COLA for 2024 will be 2.9%. For reference, click on “CPI-W, June 2024” 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 recipients’ 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, 2024, or earlier.
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.
When will I see the differance?
Gary,
It will begin to be paid next year, on the anniversary of your benefit effective date.
2.9% is beneficial. A lot better than 0.5% in 2021. 2020 was 1.4%, 2022 was 3%, 2023 was 3% and 2024 is 2.3%.
I received two years at 0.5% then 3% while social security soared, nevermind the fact that at least half of my social security is taken away from me because of wep and then I have to pay taxes a second time on the little bit of social security I do receive. Why did I have two years with 0.5% if you only had one?
What is your state of residence? Ohio does not tax social security pensions. You include it in your total income on page 1 of the tax form, but then on one of the schedules, you subtract social security benefits from your total income so it is not taxed.