2005 increases in Social Security and federal civilian annuities

U.S. Department of Labor
Employment and Training Administration
Advisory System
Washington, D.C. 20210
Classification: OWS
Correspondence symbol: DUIO
Date: February 7, 2005
Rescissions: UIPL 09-04
Expiration date: January 2006

ADVISORY: UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 12-05

TO: STATE WORKFORCE AGENCIES

FROM: CHERYL ATKINSON /s/
Administrator
Office of Workforce Security

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 annual cost of living adjustments (COLAs).

2. Background. The 2005 COLA for social security survivors and old age retirement annuities and Federal civilian pensions was effective December 1, 2004. The percent of increase was included in the benefit paid January 3, 2005. (See Federal Register, Vol. 69, No. 206, October 26, 2004, Notices 62497-62502.)

Federal civilian retirees who received benefits for at least a year under the Civil Service Retirement System (CSRS) received a 2.7 percent COLA increase; Federal civilian retirees who received benefits for at least a year under the Federal Employees' Retirement System (FERS) received a COLA increase of 2.0 percent. Both CSRS and FERS COLA increases were effective December 1, 2004, and were paid in the January 1, 2005, annuity check.

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

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

5. Attachment. Cost of Living Annuity Adjustment Percentages Schedule.

Attachment (official PDF): https://www.dol.gov/sites/dolgov/files/ETA/advisories/UIPL/2005/UIPL12-05_Attach.pdf

ATTACHMENT – UIPL NO. 12-05

Cost of Living Annuity Adjustment Percentages Schedule

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

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 the claimants’ 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 2005 annuity increases can be found on the Office of Personnel Management (OPM) web site. The web address is: http://www.opm.gov/retire/html/faqs/2005cola.asp.