Pensions & the Cost-of-Living Adjustment
If you began receiving pension benefits in December 2022 or earlier under the final average pay or CECONY career average formula, you’ll find that the amount of your April 2023 pension check will increase. The increase is a cost-of-living adjustment (COLA) that takes place every year if there is an increase in the Consumer Price Index (CPI) to help protect your retirement income against inflation. The pension plan provides an automatic COLA equal to 75 percent of the change in the CPI, with a maximum of 3 percent in any given year.
We use data from the CPI to calculate the annual COLA that is applied to pension benefits each April.
The COLA is not available if you retired under the cash balance formula or were a Local 3 employee hired after June 26, 2005.
When does the COLA become effective?
In order to get the retirement plan COLA, you must be retired by December 1 of the previous year. The COLA takes effect with the April retirement check.
This year’s COLA increase is 3.0 percent.
So, if your monthly pension has been $1,000, it will increase to $1,030 in April.