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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.  The COLA cannot exceed 3.0%.

Just how much of a COLA you will receive each year depends on the CPI increase 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 2015, the CPI increase for the Los Angeles area is 1.3%.  The Board of Administration adopted the following cost-of-living adjustments for eligible retired Members and beneficiaries, effective July 1, 2015, at their February 10, 2015 meeting. This COLA will be effective July 1, 2015:

Effective Date of Retirement Cost-of-Living Adjustment

Reminder:  The amount of ‘banked’ COLA and the amount of your COLA increase depend on your retirement date.

July 1, 1980 and earlier
3%
July 2, 1980 to July 1, 1981
2.178% - 3%
July 2, 1981 to June 30, 2015*
1.3%

*If retired after June 30, 2014, you will receive a COLA of 1/12th of 1.3% for each full month of retirement.

Because the COLA cannot exceed 3.0% (Administrative Code Sections 4.1022 for Tier 1), 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." When the CPI increase 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 increase (up to the 3.0% maximum).

Below is a COLA table that illustrates LACERS’ current and historical Cost-of-Living Adjustments and banked amounts:


Annual Cost-of-Living Adjustments for Retired Members
COLA Effective Date
CPI
Approved COLA
Max. COLA
Difference
Impact on Your Banked Benefits (COLA Bank %)
07/01/15 1.3% 1.3% 3.0 -1.7% Up to 1.7% will be used from bank
07/01/14 1.1% 1.1% 3.0% -1.9% Up to 1.9% was used from bank
07/01/13 2.0% 2.0% 3.0% -1.0% Up to 1.0% was used from bank
07/01/12 2.7% 2.7% 3.0% -.3% Up to 1.9% was used from bank
07/01/11 1.2% 1.2% 3.0% -1.8% Up to 1.8% was used from bank
07/01/10 -0.8% 0% 3.0% -3.8% Up to 3.8% was used from bank
07/01/09 3.5% 3.0% 3.0% 0.5% 0.5% was banked
07/01/08 3.3% 3.0% 3.0% 0.3% 0.3% was banked
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 1.45% 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