LACERS' Annual Cost-of-Living-Adjustment (COLA)
You will receive an annual Cost-of-Living Adjustment, or "COLA," if you are a retired LACERS Member or an eligible surviving spouse/domestic partner who receives a continuance benefit.
By May of each year, the LACERS Board is required to determine the Consumer Price Index (CPI) for the Los Angeles area in order to provide an annual COLA. Because the COLA cannot exceed 3.0% (Administrative Code Section 4.1040), when the CPI is greater than 3.0%, the difference between the maximum 3.0% and the actual CPI will be set aside in a "COLA bank."
Just how much of a COLA you will receive each year depends on your effective retirement date and how much you have "banked." If you have been retired less than one year, you receive 1/12th of the increase for each whole month you have been retired prior to July 1st.
For example, when the CPI is less than 3.0%, the COLA bank will be utilized to increase your COLA up to the maximum 3.0%, for the year if you have a "bank balance" available from previous years. If you have a zero "bank balance," your COLA will be the same as the actual CPI (up to the 3.0% maximum).
Below is a COLA Table that illustrates LACERS' Cost-of-Living Adjustments.
Annual Cost-Of-Living-Adjustment Increases for Retired Members |
|
|
|
|
|
|
Effective Date |
Average CPI |
Approved COLA |
Max. COLA |
Difference |
Impact on Your Banked Benefits (COLA Bank, %) |
|
|
|
|
|
|
07/01/07 |
4.3% |
3.0% |
3.0% |
1.3% |
1.3% was banked |
07/01/06 |
4.5% |
3.0% |
3.0% |
1.5% |
1.5% was banked |
07/01/05 |
3.3% |
3.0% |
3.0% |
0.3% |
0.3% was banked |
07/01/04 |
2.6% |
2.6% |
3.0% |
-0.4% |
Up to 0.4% was used from bank |
07/01/03 |
2.8% |
2.8% |
3.0% |
-0.2% |
Up to 0.2% was used from bank |
07/01/02 |
3.3% |
3.0% |
3.0% |
0.3% |
0.3% was banked |
07/01/01 |
3.3% |
3.0% |
3.0% |
0.3% |
0.3% was banked |
07/01/00 |
2.3% |
2.3% |
3.0% |
-0.7% |
Up to 0.7% was used from bank |
07/01/99 |
1.4% |
1.4% |
3.0% |
-1.6% |
Up to 1.6% was used from bank |
07/01/98 |
1.6% |
1.6% |
3.0% |
-1.4% |
Up to 1.4% was used from bank |
07/01/97 |
1.9% |
1.9% |
3.0% |
-1.1% |
Up to 1.1% was used from bank |
07/01/96 |
1.5% |
1.5% |
3.0% |
-1.5% |
Up to 1.5% was used from bank |
07/01/95 |
1.3% |
1.3% |
3.0% |
-1.7% |
Up to 1.7% was used from bank |
07/01/94 |
2.6% |
2.6% |
3.0% |
-0.4% |
Up to 0.4% was used from bank |
07/01/93 |
3.6% |
3.0% |
3.0% |
0.6% |
0.6% was banked |
07/01/92 |
4.0% |
3.0% |
3.0% |
1.0% |
1.0% was banked |
07/01/91 |
5.9% |
3.0% |
3.0% |
2.9% |
2.9% was banked |
07/01/90 |
5.1% |
3.0% |
3.0% |
2.1% |
2.1% was banked |
|
|
