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Your retiree cost-of-living adjustment (COLA) of 3.4% will be reflected in your retiree benefit payment this month (July). As noted in July, it will be 3.4%.
The calculation of your retiree cost of living increase (COLA) is defined in County Code and reflects the increase in the Consumer Price Index (CPI-U) from March of 2023 to March of 2024.
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If you retired or entered DROP between July of 2023 and June of 2024, your cost of living adjustment (COLA) will be prorated as shown below::
When You Retired or Entered DROP
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The Percentage of the COLA That You Will Receive
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Between July 1st & September 30th
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75%
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Between October 1st & December 31st
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50%
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Between January 1st & March 31st
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25%
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On or After April 1st
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0%
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Please note that after this first year of your retirement, you will receive the full COLA amount going forward.
This month, I want to discuss something that I am very passionate about, your retirement benefits. After serving the County for many years, you deserve a good retirement. And I feel honored to be able to help make that a reality – every month.
As a Fairfax County retiree, you are fortunate to have what is called a defined benefit pension. This means that what you receive each month is defined and you do not have to be concerned with having to fund it. The formula used to calculate your monthly benefit when you retire, as well as the annual increases (COLAs) that you receive, are specified in County Code. While you were an active employee, the County contributed (paid) a percentage of your salary, determined each year by the County’s actuary, into your retirement system. . In addition, you contributed (paid) a percentage of your salary to your retirement account in your system. The funds in each retirement system are invested and returns from those investments are used to fund your retirement. It doesn’t matter what your account balance is or how much your contributed.
This is in contrast to a defined contribution pension, such as a 401(k) plan, an IRA, or some other similar plan. Defined contribution pension plans are what many private sector employers have for their employees and retirees. In these plans, the amounts paid in (contributions) are defined; but the benefits that retirees receive are not. This means that when someone retires with a defined contribution pension, the amount that they will receive is dependent upon how much money they and their employer contributed, plus whatever returns are generated from their investments.
In simple terms, this means that your Fairfax County Retirement Systems monthly benefit will continue for as long as you live and, depending upon what spousal option you chose when you retired, for the remainder of your spouse’s life should you die before they do. It is on us (your retirement system), not you, to ensure that there are funds available to pay you, your dependents, and all current and future Fairfax County retirees.
Depending on your personal situation, the amount you receive each month may not always keep up with your cost of living, but at least it is something that you can count on. And, thanks to the great team here in Retirement, you can count on us to deliver your defined benefit pension – every month.
Please send me an email to let me know how we are doing. Thanks!
 Jeff Weiler
Executive Director-Retirement Systems
jeffrey.weiler@fairfaxcounty.gov
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