EMPLOYMENT AND TRAINING ADMINISTRATION
ADVISORY SYSTEM
U.S. DEPARTMENT OF LABOR
Washington, D. C. 20210
CLASSIFICATION

OWS

CORRESPONDENCE SYMBOL

DUIO

ISSUE DATE

December 19, 2003

RESCISSIONS

None

EXPIRATION DATE

January, 2005

ADVISORY

:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 09-04

 

TO

:

ALL STATE WORKFORCE AGENCIES

 

FROM

:

CHERYL ATKINSON s/s
Administrator
Office of Workforce Security

 

SUBJECT

:

Increase in Social Security Annuities and Federal Civilian Pensions

  1. Purpose. To announce the increases in social security annuities and federal civilian pensions due to annual cost of living adjustments (COLAs).

  2. Background. The 2004 COLA of 2.1 percent for social security survivors and old age retirement annuities will be effective December 1, 2003. The 2.1 percent will be included in the January 2004 social security annuity payment, which the Social Security Administration issued on December 31, 2003. (See Federal Register, Vol. 68, No. 204, October 22, 2003, Notices 60437-60442.)

    Federal civilian retirees under the Civil Service Retirement System (CSRS) will receive a 2.1 percent COLA increase and the Federal Employees’ Retirement System (FERS) will receive a COLA increase of 2.0 percent in their annuities. Both CSRS and FERS COLA increases will be effective December 1, 2003, and will be payable in the January 1, 2004, annuity check.

  3. The COLA of federal civilian retirement annuities is prorated as follows:

    Cost of Living Adjustment Amounts by Month Annuity Began
    CIVILIAN ANNUITIES BEGAN Amount of Percentage Increase
    CSRS FERS
    December 2002 or earlier 2.10% 2.00%
    January 2003 1.90% 1.80%
    February 2003 1.80% 1.70%
    March 2003 1.60% 1.50%
    April 2003 1.40% 1.30%
    May 2003 1.20% 1.20%
    June 2003 1.10% 1.00%
    July 2003 0.90% 0.80%
    August 2003 0.70% 0.70%
    September 2003 0.50% 0.50%
    October 2003 0.40% 0.30%
    November 2003 0.20% 0.20%


  4. Action required. States with laws that provide for reduction of the weekly unemployment insurance benefit amount by the prorated weekly amount of retirement pay and pensions should review the claimants’ records to identify those who will be affected by these COLA increases.

    States should take action to make the appropriate deductions as required by state law based on the increased retirement or annuities amount in accordance with state law.