2017 Cost-of-Living Adjustment (COLA)
February 8, 2017 – Board approves 2017 retiree COLA
The Retirement Board voted to adopt the automatic cost-of-living adjustments (COLA) at the February 8, 2017 Board meeting as calculated by CCCERA’s actuary, Segal Consulting.
The COLA will be effective April 1, 2017 and the amount will be reflected in the May 1, 2017 benefit payment.
- General Tier 2, General Tier 3 (disability retirees only) and PEPRA General Tier 5 (3% and/or 4% COLA and disability retirement only) will receive a 3.5% COLA.
- General Tier 1, General Tier 3 (service retirement only), PEPRA General Tier 4 (3% COLA), PEPRA General Tier 5 (3% and/or 4% COLA and service retirement only), Safety Tier A and PEPRA Safety Tier D retirees with an annual COLA limited to 3% will receive a 3% COLA.
- PEPRA General Tier 4 (2% COLA), PEPRA General Tier 5 (2% COLA), Safety Tier C and PEPRA Safety Tier E retirees with an annual COLA limited to 2% will receive a 2% 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 2016 and December of 2015). 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.
Please click here for more information on how the automatic COLA works.