2015 Cost-of-Living Adjustment (COLA)
February 11, 2015 - Board approves 2015 retiree COLA
At the February 11, 2015 Retirement Board meeting the Board voted to adopt the automatic cost-of-living Adjustments (COLAs) as calculated by CCCERA’s actuary, Segal Consulting.
General Tier 2 and General Tier 3 (disability retirees only) will receive a 2.5% COLA. (There is no COLA bank remaining for these two groups.)
General Tier 1, General Tier 3, PEPRA General Tier 4 and PEPRA General Tier 5 (service retirement only), and Safety Tier A and PEPRA Safety Tier D retirees with an annual COLA limited to 3% who retired on or after April 1, 1985 will receive a 2.5%, since the COLA bank for this group of retirees is also exhausted. Those with retirement dates before April 1, 1985 will receive the full 3% COLA due to the COLA bank.
PEPRA General Tier 4, PEPRA General Tier 5, Safety Tier C and PEPRA Safety Tier E retirees with an annual COLA limited to 2% will receive a 2.0% COLA.
The COLA adjustment is based on the Bay Area Consumer Price Index (CPI), which varies depending on a yearly survey of the cost of goods and services. Our actuary computes the COLA based on cost comparisons between the previous two years (December of 2014 and December of 2013). The CPI can go up, down, or remain unchanged, depending on the results of this survey. Likewise, the COLA component (only) of a retiree’s benefit may go up or down to reflect changes in the CPI. The COLA is applied in April; the amount will be reflected in the May 1, 2015 benefit payment.
Please click here for more information on how the automatic COLA works.