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<p class="MsoNormal" style="margin:0in 0in 8pt;line-height:105%;font-size:11pt;font-family:Calibri,sans-serif"><span style="font-family:Arial,sans-serif">July 23, 2026</span></p>
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<p class="MsoNormal" style="margin:3pt 0in;line-height:normal;font-size:11pt;font-family:Calibri,sans-serif"><span style="font-family:Arial,sans-serif">To:</span></p>
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<p class="MsoNormal" style="margin:3pt 0in 3pt 5.3pt;line-height:normal;font-size:11pt;font-family:Calibri,sans-serif"><span style="font-family:Arial,sans-serif">UCR
Emeriti & Retirees</span></p>
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<p class="MsoNormal" style="margin:3pt 0in;line-height:normal;font-size:11pt;font-family:Calibri,sans-serif"><span style="font-family:Arial,sans-serif">From:</span></p>
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Central HR Retirement Center on behalf of UC Office of the President</span></p>
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<p class="MsoNormal" style="margin:3pt 0in 6pt 5.05pt;line-height:normal;font-size:11pt;font-family:Calibri,sans-serif"><b><span style="font-family:Arial,sans-serif"><span class="gmail_default" style="font-family:verdana,sans-serif;font-size:small"></span>2026 UCRP Cost-of-Living Adjustments </span></b></p>
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<p class="MsoNormal" style="margin:6pt 0in;line-height:105%;font-size:11pt;font-family:Calibri,sans-serif"><span style="font-family:Arial,sans-serif">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.<br>
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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.<br>
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<b>How the COLA is calculated</b></span></p>
<p class="MsoNormal" style="margin:6pt 0in;line-height:105%;font-size:11pt;font-family:Calibri,sans-serif"><span style="font-family:Arial,sans-serif">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.<br>
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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%.<br>
<b><br>
Adjustment to HAPC for inactive UCRP members (“Inactive COLA”)</b></span></p>
<p class="MsoNormal" style="margin:6pt 0in;line-height:105%;font-size:11pt;font-family:Calibri,sans-serif"><span style="font-family:Arial,sans-serif">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.<br>
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Effective July 1, 2026, the inactive COLA is 2.00% for those with a
separation date on or before June 29, 2026.<br>
<b><br>
</b>For more information on this announcement and understanding UCRP’s COLA
and Inactive COLA, please visit the UCnet webpage at: <a href="https://ucnet.universityofcalifornia.edu/employee-news/2026-ucrp-cost-of-living-adjustments-announced/" style="color:rgb(5,99,193)">https://ucnet.universityofcalifornia.edu/employee-news/2026-ucrp-cost-of-living-adjustments-announced/</a>.</span></p>
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