Cost of Living Adjustment (COLA)

How COLAs are Determined

Pensions are adjusted according to the changes in the Consumer Price Index (U.S. city average index) as compiled by the U.S. Department of Labor. Adjustments are made January 1 based upon the CPI change for the previous 12 months ending September 30th.

Increases are limited to 5% each year, with total increases limited to 25%. If the CPI should decrease, pensions may be reduced, but not below what they were at retirement. No increase is made if the CPI increased by less than 1% since the previous adjustment.

Eligibility for COLA's

Retirees are first eligible for a COLA the second January 1 following retirement. Subsequent adjustments will be made as of January 1 of each year thereafter until the 25% cumulative maximum increase is reached