To our retirees:
As you have most likely noticed, inflation has been very high for the past several months. March, the month that is the basis for your cost-of-living adjustment (COLA), was no different. The Consumer Price Index (CPI-U) for the area that includes Fairfax increased by 7.3% from March of 2021 to March of 2022.
That said, we are limited by actuarial assumptions and County Code to providing a COLA of no more than 4%. Thus, your annual cost of living increase will be 4% this year. This 4% cap is meant to ensure that funds are available to pay for all current and future retirees. The increase is effective with your July benefit payment.
Our three retirement systems have the following funded ratios:
Police Officers 90%
When they reach full (100%) funding, the Boards of Trustees will be able to grant an additional ad-hoc COLA of not more than 1%. This would provide a small additional benefit, but full funding is at least 8 years out in the future. I am very aware of the impact inflation has on your personal budgets and fully acknowledge that this year’s 4% COLA is not enough to offset if.
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. If you cannot make contact with the team, you can call me (703-279-8255) or email me (Jeffrey.firstname.lastname@example.org) directly.
Fairfax County Retirement Systems