BOR APPROVES 2017 RETIREE COST-OF-LIVING ADJUSTMENT
At its February 9 meeting, LACERA’s Board of Retirement approved a +2.0 percent 2017 Cost-of-Living Adjustment (COLA) for retirees and eligible survivors, effective April 1, 2017.* This increase will be reflected in your April allowance. The adjustment is based on the change in the cost of living from December 2015 to December 2016, 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 1.97 percent. Rounded to the nearest one-half of one percent, as prescribed by law, the result is 2.0 percent.
Plan B, C, D, and G Retirees and Eligible Survivors Will Receive a 2.0 Percent Increase
LACERA members in Plans B, C, D, and G will obtain a 2.0 percent COLA increase, which is the maximum allowed by their plans. Therefore, they have no need to draw from their COLA Accumulation; it will remain unchanged from 2016.
Plan E retirees and eligible survivors will receive an increase up to 2.0 percent
LACERA members in Plan E 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.
Plan A retirees and eligible survivors will receive at least a 2.0 percent increase
Plan A allows for a maximum annual COLA adjustment of 3.0 percent. The 2017 COLA of 2.0 percent affects Plan A retirees and survivors as follows:
- Plan A retirees and survivors with retirement dates on or before March 31, 1981 will draw from their COLA Accumulation to fully supplement this year's COLA, making their total COLA increase 3.0 percent.
- Plan A retirees and survivors with retirement dates from April 1, 1981 to March 31, 1982 will withdraw the 0.7 percent remaining in their COLA Accumulation to partially supplement this year's COLA, making their total COLA increase 2.7 percent.
- Plan A retirees and survivors with retirement dates on or after April 1, 1982 have no accrued COLA Accumulation from which to draw and therefore will receive a 2.0 percent COLA increase.
|Retirement Plan||Retirement Date*||2016 COLA Adjustment||+||Withdrawal from COLA Accumulation||=||Total 2016
|Plan A||On or Before 3/31/81||2.0%||+||1.0%||=||3.0%|
|Plan A||From 4/1/81 to 3/31/82||2.0%||+||0.7%||=||2.7%|
|Plan A||On or After 4/1/82||2.0%||+||0.0%||2.0%|
|Plans B, C, D, PEPRA Plans C & G||All Dates||2.0%||+||0.0%||=||2.0%|
|Plan E**||6/4/02 - 3/31/17||2.0%||+||0.0%||=||Up to 2.0%|
*Includes eligible beneficiaries and alternate payees.
**Plan E COLA increases apply only to service credit earned on and after June 4, 2002, and any purchased Plan E Elective COLA. Plan E members who retired after June 4, 2002, will receive up to a 2.0 percent COLA increase. The portion of the 2.0 percent COLA is based upon 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.
View the COLA Accumulation chart for a more detailed breakdown of COLA effects on each of the plans.