The ERFC applies a cost-of-living adjustment (COLA) to your benefit annually on March 31st, beginning in the first full calendar year following your retirement. For example, if you retired in February 2013, your first COLA from ERFC would be applied to your benefit on March 31, 2014. Under current plan provisions, your first COLA will equal 1.49 percent of your monthly ERFC retirement benefit, or roughly half of the full COLA amount. Thereafter, a minimum 3% COLA will be applied to your ERFC benefit annually on March 31st.
COLA Effective July 1, 2013 (Plan 1): 2.07% for all eligible benefit payments.
Cost-of-living adjustments (COLAs) allow your retirement benefit to keep pace with inflation. The COLA is based on the Consumer Price Index for all Urban Consumers (CPI-U), published by the U.S. Bureau of Labor Statistics and updated each July 1. During years of no inflation or deflation, the COLA is 0 percent.
Remember, as any changes occur in your life during retirement, such as a new marriage, a divorce, or the loss of a spouse or other dependent, you may need to update your ERFC income tax withholdings. To request a change, you must complete and submit an updated Federal and State Income Tax Withholding Form (ERFC-9) . You may download the form from this website, or call to request a copy by mail at 703-426-3900 or 1-800-426-4208.
8001 Forbes Place
Springfield, Virginia 22151-2205
March 5, 2013