LACERS Board Approves Maximum 3% COLA for Retirees
On April 26th, the LACERS Board of Administration approved
the maximum 3% Cost-of-Living Adjustment (COLA) to eligible retirees
that will become effective July 1, 2005.
By May of each year, the Board is required to determine the Consumer
Price Index (CPI) for the Los Angeles area in order to provide a COLA
to eligible retirees. This COLA cannot exceed 3% annually (Administrative
Code Section 4.1040).
When the CPI is greater than 3%, the amount above 3% is "banked" for
future years when the CPI is less than 3%. LACERS can then use available "banked" amounts
to increase the COLA to the maximum 3%. Just how much of a COLA that
a retired Member will receive depends on the retirement date and how
much is "banked" from previous years.
In 2004, the annual average CPI for Los Angeles increased by 3.3%,
thereby providing for the maximum allowable adjustment of 3% for Members
who retired on or before July 1, 2004 and 0.3% to bebanked for all
Retired Members.
The Retiree Cost-of-Living
Adjustment (COLA) based on a retired Member's effective retirement
date is as follows:
| Effective Retirement Date |
COLA |
|
| July 1, 2004 and earlier |
3.0% |
|
| July 2, 2004 - July 1, 2005 |
1/12 th
of 3.0% for each full month of retirement completed
by 7/1/05 |
|
|
|
|
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Member Communications
LACERS
April 27, 2005
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