LACERS Board Approves Maximum 3% COLA for Retirees
On March 28th, the LACERS Board of Administration approved
the maximum 3% Cost-of-Living Adjustment (COLA) to eligible
retirees. It will become effective July 1, 2006.
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".
In future years when the CPI is less than 3%, LACERS can use
available "banked" amounts to increase the COLA to
the maximum 3%. Just how much of a COLA a retired Member will
receive depends on the retirement date and how much is "banked" from
previous years.
In 2005, the annual average CPI for Los Angeles increased
by 4.5%. Therefore, Members who retired on or before July 1,
2005 will receive the maximum allowable COLA of 3% and all
retired Members will have the remaining 1.5% banked for the
future.
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, 2005 and earlier |
3.0% |
July
2, 2005 to July 1, 2006 |
1/12 th of 3.0%
for each full month of retirement completed by
7/1/06 |
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Member Communications
LACERS
April 14, 2006
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