2023 Social Security and federal civilian pension adjustments

CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                  Unemployment Insurance
               ADVISORY SYSTEM                             CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                         OUI/DUIO
             Washington, D.C. 20210                        DATE
                                                           December 28, 2022


ADVISORY:        UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 22-22

TO:              STATE WORKFORCE AGENCIES

FROM:            BRENT PARTON
                 Acting Assistant Secretary

SUBJECT:         Social Security Annuities and Federal Civilian Pensions

1. Purpose. To ensure that states are aware that the social security survivors and old age
   retirement annuities and the Federal civilian pensions annual cost-of-living adjustment
   (COLA) increased for calendar year (CY) 2023, and to provide the U.S. Office of Personnel
   Management’s (OPM) COLA information.

2. Action Requested. State Administrators should provide the information contained in this
   Unemployment Insurance Program Letter (UIPL) to appropriate staff.

3. Summary and Background.

   a. Summary – This UIPL provides the (CY) 2023 COLA information and informs states to
      make necessary programming adjustments to accommodate the COLA increase.

   b. Background – Each year, OPM posts the COLA information for social security survivors
      and old age retirement annuities and Federal civilian pensions on its website. The 2023
      COLA information is located at: https://www.opm.gov/retirement-center/my-annuity-
      and-benefits/annuity-payments/#url=Cost-of-Living. ETA is providing these tables in
      Attachment I.

4. Instructions. States that have laws requiring a reduction of the unemployment insurance
   (UI) weekly benefit amount by the prorated weekly amount of retired pay and pensions
   should program the increase in the COLA amount for CY 2023 into their UI systems.

5. Inquiries. Please direct inquiries to the appropriate Regional Office.

6. References.
      • 5 U.S.C. 8502(b); and
      • UCFE Handbook 391 For State Agencies, Chapter VII (3)(g).

7. Attachment. Attachment I: Prorated CSRS and FERS COLA Effective 12/01/2022.

   RESCISSIONS                                              EXPIRATION DATE
   None                                                     Continuing

                                                              Attachment I to UIPL No. 22-22

  Prorated Civil Service Retirement System (CSRS) and Federal Employees Retirement
                       System (FERS) COLA Effective 12/01/2022


Social Security Annuities and Federal Civilian Pensions

Under the Civil Service Retirement System (CSRS) and the Organization Retirement and
Disability System (ORDS), the COLA will be 8.7 percent for those who have received benefits
for at least one year. Under the Federal Employees Retirement System (FERS) and FERS
Special, the COLA will be 7.7 percent for those who have received benefits for at least one year.

The table below shows the prorated percentage increase according to the month the retiree’s
annuity began.


            Monthly Annuity Began              Amount of Percentage Increase
              Retirement System                  CSRS                    FERS
          December 2021 or earlier               8.7%                    7.7%
          January 2022                           8.0%                    7.1%
          February 2022                          7.3%                    6.4%
          March 2022                             6.5%                    5.8%
          April 2022                             5.8%                    5.1%
          May 2022                               5.1%                    4.5%
          June 2022                              4.4%                    3.9%
          July 2022                              3.6%                    3.2%
          August 2022                            2.9%                    2.6%
          September 2022                         2.2%                    1.9%
          October 2022                           1.5%                    1.3%
          November 2022                          0.7%                    0.6%