[July 7, 2011]

Benefit recipients of the University of California Retirement Plan (UCRP) and the University of California – Public Employees’ Retirement System Voluntary Early Retirement Incentive Program (UC-PERS Plus 5 Plan) will receive a cost-of-living adjustment (COLA) beginning July 1, 2011. The increase will appear in checks paid at the end of July.

The July 1, 2011 COLA rates for UCRP and UC-PERS Plus 5 Plan members or benefit recipients will be as follows:

• UCRP provides a COLA for recipients of UCRP Disability, Death While Eligible (DWE), Pre-Retirement Survivor and Survivor Income.

At its December 2010 meeting, the UC Board of Regents approved an annual COLA effective July 1, 2011 for all UC- PERS Plus 5 Plan members, provided the UC-PERS Plus 5 Plan’s funded status exceeds 100 percent. The COLA for- mula for the UC-PERS Plus 5 Plan will be the same as that used for UCRP.

How the COLA is calculated
The 2011 COLA is based on the 1.98 percent average increase in the Consumer Price Index (CPI) measured February 2010 to February 2011 for the Los Angeles and San Francisco metropolitan areas.

The COLA formula generally matches the cumulative increase in the CPI up to 2 percent annually. This year members who retired before July 2, 2006 will receive a slightly larger 2 percent COLA. The larger COLA helps those benefits recipients retain more of their purchasing power by partially making up for the years of inflation greater than 2 percent that were not matched by previous COLAs.

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