In accordance with the UNJSPF Pension Adjustment system, there will be no cost-of-living adjustment to the US dollar track of periodic benefits for this year. This is because the United States’ consumer price index (US CPI) movement over a one-year period from December 2019 to December 2020 is less than the 2% threshold for cost of living adjustment.
However, US dollar track retirees and beneficiaries who receive periodic benefits in non-US currencies could see change in monthly benefits due to the change in quarterly exchange rate.
For the latter case, Cost-of-Living Adjustment (COLA) letters with these details will be issued by the end of April 2021. All beneficiaries who have registered for the Fund’s personalized Member Self Service (MSS) will be able to access their COLA letter under the MSS DOCUMENTS tab then.
What is the Cost-of-Living Adjustment?
Your initial benefit is adjusted over time for movements of the consumer price index in the United States or for your country of residence. If your benefit is on the dollar track, it will be adjusted periodically in accordance with the movement of the United States consumer price index (CPI). If you have opted for the two-track system, your pension amount will be adjusted by the movement of the CPI of your country of residence. For more information about the two-track, click here. For more information about cost of living adjustment, click here or continue reading.
How often is my benefit adjusted for the Cost-of-Living?
Normally benefits are adjusted for the cost-of-living once a year, provided that the CPI has moved by at least 2% since the date of the last adjustment. Such adjustments are normally undertaken in April of the following year. However, in high-inflation situations, i.e. where the consumer price index has moved by 10% or more since the date of the last adjustment, benefits are adjusted semi-annually, on 1 April and 1 October.
For more information, please check the Cost of Living Adjustment dedicated page.