Social Security has announced that they will be granting a cost of living increase of 2.8% for the year 2019. Based on the statutes governing Cost of Living Adjustments (COLA) for CTRB members, the Connecticut Teachers’ Retirement Board will be granting COLA as follows.
CT TRB 2019 COLA
COLA Group |
COLA Increase |
|---|---|
| Members retired prior to September 1992 | 3% |
| Members retired on or after September 1, 1992 and joined the system prior to July 1, 2007 | 1.5% |
| Members retired on or after September 1, 1992 and joined the system on or after July 1, 2007 | 1% |
The Connecticut Teachers’ Retirement Board provides for an annual cost of living adjustment (COLA) once a member has been retired for at least a minimum of nine months. COLA increases are paid in either January or July depending on the member’s effective date of retirement. The annual COLA date for members retiring November through April is January and the annual COLA date for members retiring May through October is July.
Members who retired prior to September, 1992 and who receive their annual cost of living adjustment in January (not July) will receive an increase based on the National Consumer Price Index for the twelve month period ending on November 30th of the preceding year. Members who retired prior to September, 1992 and who receive their annual cost of living adjustment in July will receive an increase based on the National Consumer Price Index for the twelve month period ending on May 31st of the preceding year. The COLA increase ranges from a minimum of 3% to a maximum of 5% annually.
For members who retired on or after September 1, 1992 and joined the system prior to July 1, 2007, the COLA is calculated by using the cost of living adjustment granted by the Social Security Administration for the applicable year and the investment performance of the retirement fund for the preceding fiscal year, subject to a maximum of 6%. If the investment performance of the retirement fund for the preceding fiscal year is less than 8.5%, the cost of living adjustment will be capped at 1.5%.
For members who join the system on or after July 1, 2007, the cost of living adjustment will be based on the Social Security cost of living and the investment performance of the retirement fund for the prior fiscal year subject to a maximum of 5%. If the investment performance of the retirement fund is less than 8.5%, the cost of living adjustment will be capped at 1%. If the investment performance of the retirement fund for the prior fiscal year is between 8.5% and 11.5%, the cost of living will be capped at 3%. If the investment performance of the retirement fund is over 11.5%, the cost of living will be capped at 5%.
The COLA will increase a member’s taxable income. Members may change their federal withholding tax by submitting a Federal Tax Withholding Change Form. Members may change their state withholding tax by submitting a Connecticut Withholding Change Form.
For members who chose the extra annuity option for their Supplemental and/or Voluntary Account balance at retirement, the COLA does not apply to the annuity portion of the retirement benefit.
A history of the Cost of Living Adjustments Granted From 1978 is available on the Statistics and Research page of the TRB website.
Refer to the Cost of Living Adjustments Bulletin for further information on this topic.
