Inflation Hits Cost of Living Adjustment (COLA) in Virginia

Each year, millions of individuals eligible for social security benefits receive a cost of living adjustment (COLA). This COLA is to ensure that income benefits aren’t eroded by inflation. The annual change in COLA is determined by the Consumer Price Index (CPI-W).

On October 1st of each year, the Virginia Commission adjusts the COLA provided to all injured workers in the Commonwealth who are receiving wage loss benefits. Between 2018 and 2021, the Virginia COLA has ranged from as low as 1.4% (2021) and as high as 2.3% in 2020. Due to soaring inflation, the 2022 COLA was adjusted to 7.4%, a vast increase from 2021.

Please reach out to the attorneys at Tarpine, Heller & Pendergrass if you have any questions on how this COLA rate may affect benefits owed on claims or setting reserves for future exposure.

Sarah Burton