The LACERS Board recently approved annual Cost-of-Living Adjustments, or COLAs, for Tier 1 and Tier 3 Retired Members and Beneficiaries, effective July 1, 2018.
You will receive the COLA if you are a retired LACERS Member, or an Eligible Surviving Spouse/Domestic Partner who receives a continuance benefit. The amount of COLA you receive depends on your retirement date and if you have any ‘banked’ COLA from previous years.
Tier 1 COLA:
Tier 1 Members and BeneficiariesIf you retired on or before July 1, 1980 - 3%
Tier 1 Members and BeneficiariesIf you retired on or after July 2, 1980 to June 30, 2017 - 2.8%
Tier 1 Members and Beneficiaries with less than 1 full year of retirementIf you have been retired less than one year from July 1, 2017 to June 30, 2018 - 1/12th of the increase for each whole month you have been retired prior to July 1st.
Tier 3 COLA
Tier 3 Members and Beneficiaries - 2%
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. If the CPI is 3.0% or less, the Board has the authority to set the COLA increase to an amount equal to the CPI. The Board can not authorize a COLA greater than 3.0% (See Administrative Code Section 4.1022 for Tier 1 Members).
Because the COLA cannot exceed 3.0%, 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." In years when the CPI increase is less than 3.0%, and if you have a "bank balance" available from previous years, the COLA bank will be utilized to increase your COLA up to the maximum 3.0% for the year. If you have a zero "bank balance," your COLA will not be increased.
If you have any questions, please call RLACEI at:
1-800-678-4145 ext. 0.