ADVISORY:	UNEMPLOYMENT INSURANCE PROGRAM LETTER No.22-03
TO:	ALL STATE WORKFORCE AGENCIES

FROM:	CHERYL ATKINSON  /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 2002 COLA of 1.4 percent for social security survivors and old age retirement annuities was effective December 1, 2002. The 1.4 percent was included in the January 2003 social security annuity payment, which the Social Security Administration issued on December 30, 2002. (See Federal Register, Vol. 67, No. 207, October 25, 2002, Notices 65620-65625.)

Federal civilian retirees under the Civil Service Retirement System (CSRS) and the Federal Employees' Retirement System (FERS) received COLA increases of up to 1.4 percent in their annuities. Both CSRS and FERS COLA increases were effective December 1, 2002, and were payable in the January 2, 2003, annuity check.

RESCISSIONS	EXPIRATION DATE
None	January 2004

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
December 2001 or earlier	--------------------------1.4%
January 2002	--------------------------1.3%
February 2002	--------------------------1.2%
March 2002	------------------------- 1.1%
April 2002	--------------------------0.9%
May 2001	--------------------------0.8%
June 2002	--------------------------0.7%
July 2002	------------------------- 0.6%
August 2002	--------------------------0.5%
September 2002	------------------------- 0.4%
October 2002	--------------------------0.2%
November 2002	------------------------- 0.1%

3. Action Required. States with laws that provide for reduction of the weekly UI benefit amount by the prorated weekly amount of retirement pay and pensions should review the claimants' records to identify those who were 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.