LACERA - The Los Angeles County Employees Retirement Association LACERA Home Disclaimer Links My LACERA FAQs Contact Us LACERA Home


Search by Topic

Brochures & Forms


BENEFITS


CURRENT YEAR COST-OF-LIVING ADJUSTMENT

BOR APPROVES 2021 RETIREE COST-OF-LIVING ADJUSTMENT

At its February 3rd meeting, LACERA’s Board of Retirement approved a 1.5 percent 2021 COLA increase, which is less than the maximum allowed for retirees and eligible payees for all plans. This will be supplemented by each plan and retirement year?s available COLA Accumulation. The following increase will be reflected in your April 30 benefit payment, as applicable: up to +3.0 percent for some Plan A retirees and eligible payees (up to +2.0 percent for most Plan A members); up to +2.0 percent for most Plans B, C, D, and G retirees and eligible payees; and up to +2.0 percent for Plan E retirees and eligible payees.

The adjustment is based on the change in the cost-of-living index from December 2019 to December 2020, as released by the Bureau of Labor Statistics Consumer Price Index (CPI) for all urban consumers in the Los Angeles–Long Beach–Anaheim metro area. The year-to-date change is 1.45 percent. When rounded to the nearest one-half of one percent, as prescribed by law, the result is a 1.5 percent benefit increase. Because the 2020 COLA increase is below the maximum COLA threshold for all Plans, there will be no amount added to the accumulation accounts. Instead, most Plans, depending upon retirement date, will draw from available COLA Accumulation to supplement COLA Award.

Plan A Retirees and Eligible Payees Will Receive a 3.0 Percent Increase

Plan A allows for a maximum annual COLA Award of 3.0 percent. Since this year’s increase is less than that amount, there may be available COLA Accumulation to supplement the approved increase. Those with retirement dates up to up to March 31, 1981 will receive 3.0 percent; dates between April 1, 1981 and March 31, 2018 will receive 2.0 percent; and dates between April 1, 2018 and March 31, 2021 will receive a 1.5 percent increase.

Plan B, C, D, and G Retirees and Eligible Payees Will Receive a 2.0 Percent Increase

These plans allow for a maximum annual COLA Award of 2.0 percent. Since this year’s increase is less than that amount, there may be available COLA Accumulation to supplement the approved increase. Those with retirement dates up to March 31, 2020 will receive a 2.0 percent increase and dates between April 1, 2020 and March 31, 2021 will receive a 1.5 percent increase.

Plan E Retirees and Eligible Payees Will Receive an Increase of up to 2.0 Percent

Plan E* members will receive a cost-of-living adjustment prorated based on work history prospective from June 4, 2002 and any purchased Plan E Elective COLA, up to 2.0 percent. Those with retirement dates on and after June 4, 2002 are eligible to receive up to 2.0 percent. Those with retirement dates between April 1, 2020 and March 31, 2021 do not have enough accumulated COLA to draw from and will receive up to a 1.5 percent increase.

*Plan E COLA increases apply only to service credit earned after June 4, 2002, and any purchased Plan E Elective COLA. The portion of the 2.0 percent COLA is based upon a ratio of the months of service earned after June 4, 2002, plus any purchased Plan E Elective COLA, divided by the total months of service.

2021 COLA Adjustment: Effects on All LACERA Plans
Retirement Plan COLA Increase Approved for 2021 2021 COLA Maximum Allowed Deductions from COLA Accumulation
Plan A 1.5%   Up to 3.0%   Up to (1.5%)
Plans B, C, D, and PEPRA Plans C & G 1.5% Up to 2.0%  (0.5%)
Plan E 1.5% Up to 2.0%   (0.5%)

View the COLA Accumulation chart for a more detailed breakdown of COLA effects on each of the plans.

3/5/21