Cost of Living Adjustments
As high inflation continues to impact US households, many retirees with fixed incomes are faced with the risk of losing purchasing power. Fortunately, your LAGERS benefit is designed to help protect against inflation risk with annual cost of living adjustments (COLAs).
Each September, the LAGERS Board of Trustees approves cost of living adjustments, which are based on the Consumer Price Index (CPI). While these adjustments are given at the discretion of the Board depending on the financial solvency of the system, LAGERS continue sto be one of the best-funded systems nationwide, and retirees can again expect to receive an adjustment this October.
In uncertain economic times, LAGERS retirees can continue to count on the security of a protected, stable benefit.
The maximum increase allowed by state law is 4%. When the CPI exceeds 4%, eligible retirees can expect to receive 4% each year until your benefit reaches 100% purchasing power. In uncertain economic times, LAGERS retirees can continue to count on the security of a protected, stable benefit.
The maximum increase allowed by state law is 4%. When the CPI exceeds 4%, eligible retirees can expect to receive 4% each year until your benefit reaches 100% purchasing power. In uncertain economic times, LAGERS retirees can continue to count on the security of a protected, stable benefit.
Printed Pay Stubs No Longer Mailed
As of September 1, 2022, LAGERS no longer mails a paper check-stub when your benefit amount changes.
If you would like to know your benefit amount changes before they happen, you can view your next benefit payments on myLAGERS. Benefit amounts are most likely to change in February, when the new tax tables are updated, and October with a corresponding cost of living adjustment.
Federal Tax Withholding Update
The IRS has made updates to the W-4P withholding form for retirees. These changes will likely not require any immediate action from you because the IRS provided LAGERS with the ability to transfer your current withholding designations to the new form. Going forward, you can make updates to your tax withholdings on myLAGERS or by using the new W-4P form.
Loss of a Loved One?
If you elected Option A or Option B and your listed beneficiary passed away, be sure to notify LAGERS. Upon notification of your beneficiary’s death, LAGERS will increase your benefit up to the full unreduced benefit for the remainder of your life. This provision only applies to members who retired after 9/1/1992
