To our retirees:
As you have most likely noticed, inflation has been high for the past year or so. In March, the month that is the basis for your cost-of-living adjustment (COLA), growth in prices slowed down some. While the overall nationwide Consumer Price Index (CPI-U) was up 5.0% from March of 2022 to March of 2023, the CPI-U for the Washington-Arlington-Alexandria area that includes Fairfax increased by 3.7% for the same period. It is this local index that, by County Code, we must use to calculate your cost of living increase.
Inflation Trends
As the following chart shows, consumer prices are down for now from their highs last year. At this stage, it is uncertain if this downward trend will continue or if prices will begin to increase again.
Components of the CPI
The CPI is based on what the Bureau of Labor Statistics calls a "market basket" of goods and services, summarized into 8 categories; everything from food to housing to medical care. The following chart shows the increases and decreases in these 8 categories from March of 2022 to March of this year.
As you can see, some categories such as food and housing increased more than the average of 3.7%, while one (Medical Care) actually showed a decline.
Historic Cost of Living Increases
Finally, the following chart shows the COLAs for the past 14 years.
Bottom Line
To summarize, all of you who have been retired for at least 1 year will see a 3.7% cost of living increase in your July retiree benefit direct deposit or check. If you will have been retired for less than 1 year in July, your increase will be prorated.
If you have questions or need more information, please reach out to a member of our Retiree Services team. They will be happy to help. Or, as always, I appreciate hearing from our members as well. Feel free to call (703-279-8255) or email me (Jeffrey.weiler@fairfaxcounty.gov) directly.
Thank you.
Jeff Weiler
Executive Director
Fairfax County Retirement Systems
For additional information on how to Cost of Living Adjustment is determined, please review the information provided by the U.S. Bureau of Labor Statistics: The Consumer Price Index for All Urban Consumers (CPI-U)