Tenorio: $20.4M COLA checks for 8,800-plus retirees, survivors

More than 8,800 government of Guam retirees and their qualified survivors can soon expect to receive their $2,300 cost of living allowance, COLA, payments, Lt. Gov. Josh Tenorio announced on Thursday.

Tenorio said the Department of Administration is transmitting more than $20.4 million to fund the retiree COLA at $2,300 per recipient.

The release of this year's COLA payments to nearly 9,000 GovGuam retirees and survivors comes two weeks earlier than required by Guam law, which is Nov. 1.

"We hope that you will be able to utilize these funds to support your lives and we of course pledge our continued support to our retirees and survivors," Tenorio said in a video message.

COLA payments are released annually and are appropriated every fiscal year.

Taxpayers fund the additional payments, which aren't part of government retirement benefits. The checks are distributed by the government of Guam Retirement Fund, using cash from the general fund.

Payments aren't based on the actual cost of living. Instead, recipients receive a flat payment of $2,300.

Adelup said since taking office in 2019, the Leon Guerrero-Tenorio administration has made it a priority to ensure the timely payment of COLA to retirees. It added that the administration takes "great pride in supporting the workers who have devoted their careers to public service."

The release of COLA checks has been considered as helping to boost consumer spending and the economy, similar to the release of tax refunds.

The GovGuam COLA release also comes a week after the Social Security Administration announced that Social Security recipients will see a 2.5% cost-of-living increase to their monthly checks starting in 2025 to help them keep up with food prices and other basic needs.

This means an average increase of $50 every month beginning in January.

SSA announces its COLA each fall based on the consumer price index, which tracks the average change in prices paid for a given basket of goods.