The Utah Retirement Systems (URS) retiree COLA is based on the Consumer Price Index (CPI) as determined by the U.S. Bureau of Labor Statistics. The URS retiree COLA is calculated using the average CPI for the calendar year compared to the average CPI for the previous calendar year as required by Utah Code Title 49. The average change in the CPI is also used by the Social Security Administration (based on a September 30 calculation date) and helps reduce volatility in the annual COLA.
Many retirees are familiar with another method of calculating the CPI which is frequently reported in the news media. This method shows the change in the CPI from December 31 of the current year to December 31 of the previous year. The following table shows the CPI calculation for the last five years using each method.
Year |
Dec. 31 / Dec. 31 CPI |
Average / Average CPI (used by URS) |
2005 |
3.4% |
3.4% |
2006 |
2.5% |
3.2% |
2007 |
4.1% |
2.8% |
2008 |
0.1% |
3.8% |
2009 |
2.7% |
-0.4% |
TOTAL |
12.8% |
12.8% |
In 2009 URS retirees received a 3.8% COLA (2.5% COLA for Public Safety retirees whose employer did not elect a 4% COLA) in the month of their retirement anniversary, based on the average change in the CPI for the previous year. In 2010 URS retirees will not receive a COLA because the average change in the CPI for the previous year was negative. Likewise, Social Security payments will not be increased by a COLA in 2010 due to the negative CPI. Please note: URS retiree benefit checks will not be reduced because of the negative CPI.
If you have questions about your URS retiree COLA please call 801-366-7770 or 1-800-695-4877. We look forward to serving you.
URS | 
