Updated October 30, 2026. Quick answer: The UC Retirement Plan (UCRP) COLA is a formula: it generally matches the annual CPI increase up to 2%, plus 75% of the increase over 4%, to a maximum of 6%. For July 1, 2026 UCnet announced 2.00% for those retired on or before July 1, 2025, based on a 2.70% average CPI increase from February 2025 to February 2026. The 2027 COLA is not published.
More on public pension retirement ages and eligibility: the UCRP retirement age and eligibility rules.
The rule in the plan description
The 1976 Tier summary plan description says: “After receiving benefits for one year, UCRP members are eligible to receive an annual cost-of-living adjustment (COLA), starting on the following July 1.” “The maximum COLA is 6 percent. If the CPI decreases, UCRP benefits are not reduced.” It defines the index: “The CPI used to determine the annual COLA is an average of the CPIs for the Los Angeles and San Francisco metropolitan areas and is measured from February to February.”
The 2026 announcement
UCnet announced: “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%.” “Effective July 1, 2026, the COLA rate is 2.00% for those with a retirement date on or before July 1, 2025.” On the index it said: “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.” On eligibility: “UCRP benefit recipients are eligible to receive a COLA if they have been retired one full year by July 1.”
What the documents do not say
The sources read do not say who sets the COLA beyond the plan formula, and the summary plan description says the formula applies generally. UCnet labels the figure for July 1, 2026 as the 2025 COLA; this page uses the stated effective rate.
Where 2027 stands
The July 2027 UCRP COLA is not published: it uses the February 2027 CPI, so it cannot be computed yet.
Common mistakes
- Expecting the COLA in the first year. A member must have received benefits for one year before the following July 1.
- Assuming a CPI decrease cuts the benefit. The 1976 Tier plan description says UCRP benefits are not reduced.
- Using the Los Angeles CPI alone. The 1976 Tier plan description says the index averages Los Angeles and San Francisco.
Related: UCRP retirement decisions, how public pension decisions work, and whether California taxes pensions.
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Answer againSources
- University of California, UC Retirement Plan 1976 Tier Summary Plan Description for Members with Social Security: ucnet.universityofcalifornia.edu
- University of California, UCnet, 2026 UCRP cost-of-living adjustments announced: ucnet.universityofcalifornia.edu
- Related official page (not quoted): IRS Tax Topic 410, Pensions and annuities: www.irs.gov
- Related official page (not quoted): IRS Tax Topic 411, Pensions: the General Rule and the Simplified Method: www.irs.gov
Read from the primary documents linked above on October 30, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the IRS itself is the right place to confirm anything consequential.