Federal pension COLAs and Social Security reference for 2007

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2007/UIPL05-07_508.pdf

CLASSIFICATION
 EMPLOYMENT AND TRAINING ADMINISTRATION                OWS
            ADVISORY SYSTEM                            CORRESPONDENCE SYMBOL
          U. S. Department of Labor                    UI/DUIO
           Washington, D.C. 20210                      January 4, 2007

ADVISORY:              UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 5-07

TO:                    STATE WORKFORCE AGENCIES

FROM:                  EMILY STOVER DeROCCO /s/
                       Assistant Secretary

SUBJECT:               Increase in Social Security Annuities and Federal Civilian
                       Pensions

1. Purpose. To ensure that State Workforce Agencies are aware of the increases in
   social security survivors and old age retirement annuities and Federal civilian
   pensions due to the annual cost of living adjustment (COLA).

2. Background. The 2006 COLA for social security survivors and old age retirement
   annuities and Federal civilian pensions was made effective December 1, 2006. The
   percent of increase will be included in the benefit payment beginning
   January 2, 2007. (See Federal Register, Vol. 71, No. 207, October 26, 2006, Notices
   62636-62642).

      Federal civilian retirees who received benefits for at least one year under the Civil
      Service Retirement System (CSRS) and the Organization Retirement and Disability
      System (ORDS) will receive a 3.3 percent COLA increase, and Federal civilian
      retirees who received benefits for at least one year under the Federal Employees’
      Retirement System (FERS) will receive a COLA increase of 2.3 percent. Both CSRS
      and FERS COLA increases were effective December 1, 2006, and will be paid in the
      January 2, 2007, annuity check.

3. Action Required. State Administrators should provide this information to
   appropriate staff.

RESCISSIONS                                            EXPIRATION DATE
None                                                   January 4, 2008

4. Inquiries. Direct inquiries to the appropriate Regional Office.

5. Attachment. Cost of Living Annuity Adjustment Percentages Schedule

Attachment: https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2007/UIPL05-07_Att1.pdf

ATTACHMENT – UIPL NO. 5-07

The COLA of Federal civilian retirement annuities is prorated as follows:

                         Amount of Percentage Increase

CIVILIAN ANNUITIES                           CIVILIAN ANNUITIES
BEGAN                         CSRS/          BEGAN              FERS
                              ORDS
December 2005                 3.3%        December 2005                  2.3%
January 2006                  3.1%        January 2006                   2.1%
February 2006                 2.8%        February 2006                  1.9%
March 2006                    2.5%        March 2006                     1.7%
April 2006                    2.2%        April 2006                     1.5%
May 2006                      2.0%        May 2006                       1.3%
June 2006                     1.7%        June 2006                      1.1%
July 2006                     1.4%        July 2006                      1.0%
August 2006                   1.1%        August 2006                    0.8%
September 2006                0.8%        September 2006                 0.6%
October 2006                  0.6%        October 2006                   0.4%
November 2006                 0.3%        November 2006                  0.2%

States with laws that provide for reduction of the weekly unemployment insurance
benefit amount by the prorated weekly amount of retirement pay and pensions should
review claimant records to identify those who are affected by these COLA increases.
States should take action to make the appropriate deductions as required by state law
based on the increased retirement or annuities amount in accordance with their state law.

Additional information about the 2007 annuity increases may be found on the Office of
Personnel Management (OPM) web site, when it is posted in January, 2007. The web
address is: http://www.opm.gov/retire/html/faqs/2007cola.asp.

Additional information about the 2007 Social Security COLA can be found at:
http://www.ssa.gov/pressoffice/pr/2007cola-pr.htm.

Note: Federal Employees Retirement System (FERS) and FERS Special Cost-of-Living
Adjustments are not provided until age 62, except for disability, survivor benefits, and
other special provision retirements.