Benefit Changes Cost-of-Living Adjustment
A retiree who has received benefits for 12 months will receive an annual cost-of-living adjustment. The COLA is determined by the recipient’s retirement group. Group A members who retire within the first five calendar years after Jan. 7, 2013 will receive a simple, 3 percent COLA until Dec. 31, 2018. Thereafter, their COLA will be based on an allowance equal to a percentage of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), up to 3 percent. Groups B and C members will receive a COLA based on an allowance equal to a percentage of the CPI-W, up to 3 percent.
The COLA is not compounded. It will always be based on your initial retirement annuity benefit, not the benefit plus accumulated allowances. If the CPI-W used to determine COLA is negative, no allowance will be granted the following year