[Ucrea] 2026 UCRP Cost-of-Living Adjustments

[Cristina Otegui]

[image: image.jpeg]



July 23, 2026

To:

UCR Emeriti & Retirees



From:

UCR Central HR Retirement Center on behalf of UC Office of the President



Re:

*2026 UCRP Cost-of-Living Adjustments *



Recipients of University of California Retirement Plan (UCRP) and UC-PERS
Plus 5 Plan benefits—including retirees, survivors, contingent annuitants,
and individuals receiving UCRP disability income—will receive a 2.00%
cost-of-living adjustment (COLA) effective July 1, 2026. The increase will
be reflected in benefit payments issued on August 1, 2026.

To qualify, UCRP members must have been retired or receiving disability
benefits on or before July 1, 2025, completing one full year of retirement
by the effective date. Individuals whose retirement or disability date is
after July 1, 2025, are not yet eligible for the 2026 COLA.

*How the COLA is calculated*

The 2025 COLA is based on the 2.70% average increase in the Consumer Price
Index (CPI) for the Los Angeles and San Francisco metropolitan areas from
February 2025 to February 2026.

The UCRP COLA formula generally matches the annual increase in the CPI up
to 2%, plus 75% of the CPI increase in excess of 4%, to a maximum COLA of
6%. This year’s COLA for all eligible benefit recipients is 2.00%. As of
July 1, 2026, the purchasing power of benefits for all annuitants remains
above 80%.

* Adjustment to HAPC for inactive UCRP members (“Inactive COLA”)*

When inactive UCRP members retire or request a lump sum benefit payment,
their benefit is calculated based on the Highest Average Plan Compensation
(HAPC) as of their separation date. For inactive members who retire with
1976 Tier service credit or who were Safety or Tier Two Members, their HAPC
is increased by the lesser of 2% or the actual increase in the CPI,
compounded annually, from the separation date to the date the inactive UCRP
member retires or requests a lump sum benefit payment.

Effective July 1, 2026, the inactive COLA is 2.00% for those with a
separation date on or before June 29, 2026.

For more information on this announcement and understanding UCRP’s COLA and
Inactive COLA, please visit the UCnet webpage at:
https://ucnet.universityofcalifornia.edu/employee-news/2026-ucrp-cost-of-living-adjustments-announced/
.
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