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BENEFITS


CURRENT YEAR COST-OF-LIVING ADJUSTMENT

BOR APPROVES 2018 RETIREE COST-OF-LIVING ADJUSTMENT

At its February 15, 2018 meeting, LACERA’s Board of Retirement approved a 3.5 percent 2018 COLA increase, exceeding the maximum allowed in all plans for retirees, eligible survivors or beneficiaries, and alternate payees. This increase will be reflected in your April allowance as applicable: +3.0 percent for Plan A retirees and eligible payees; +2.0 percent for 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 from December 2016 to December 2017, as released by the Bureau of Labor Statistics Consumer Price Index (CPI) for all Urban Consumers in the Los Angeles–Riverside–Orange County metro area. The year-to-date change is 3.61 percent. Rounded to the nearest one-half of one percent, as prescribed by law, the result is a 3.5 percent increase.

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

Plan A allows for a maximum annual COLA adjustment of 3.0 percent. Since this year’s 3.5 percent COLA increase exceeds the maximum allowed in Plan A, the excess 0.5. percent will be added to the COLA Accumulation.

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

LACERA members in Plans B, C, D, and G will receive the maximum allowed COLA adjustment of 2.0 percent. Since this year’s 3.5 percent COLA increase exceeds the allowed 2.0 percent maximum adjustment for all the plans, the excess 1.5 percent will be added to the COLA Accumulation.

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. The portion of the 2.0 percent COLA is based on a ratio of the months of service earned on and after June 4, 2002, plus any purchased Plan E Elective COLA, divided by the total months of service. Since this year’s COLA increase exceeds the 2.0 percent maximum allowed in Plan E, the excess 1.5 percent will be added to the COLA Accumulation.

2018 COLA Adjustment: Effects on All LACERA Plans
Retirement Plan COLA Increase Approved for 2018 2018 COLA Adjustment (Maximum Allowed) = Excess Added to COLA Accumulation
Plan A 3.5%   3.0%   =   0.5%
Plans B, C, D, and PEPRA Plans C & G 3.5% 2.0%   =   1.5%
Plan E 3.5% 2.0%   =   1.5%

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

2/15/18