Increase for Plan G as of April 2023: 2.0 Percent
Plan G retirees and eligible survivors will receive the maximum allowable annual COLA of 2.0 percent, starting with their April 2023 payment.
How the Current COLA Was Determined
At its February 1, 2023 meeting, LACERA’s Board of Retirement approved a 5.0 percent 2023 cost-of-living adjustment (COLA) increase, exceeding the maximum allowed for retirees and eligible payees for all plans. (All plans will receive the maximum allowed annual increase, and the excess percentage will be added to the COLA Accumulation, as summarized below.)
This year’s COLA is based on the cost-of-living increase for the calendar year 2022, as reflected in the Bureau of Labor Statistics Consumer Price Index (CPI) for all urban consumers in the Los Angeles–Long Beach–Anaheim metro area. The calendar year-to-date CPI change is 4.9 percent. In determining the COLA award, the amount is rounded to the nearest one-half percent, as prescribed by law, resulting in a 5.0 percent increase.
The current CPI percentage increase of 4.9 percent is used to calculate this year’s COLA Accumulation. Since this year’s COLA increase exceeds the 2.0 percent maximum allowed in Plan G, the remaining 2.9 percent will be added to the COLA Accumulation.
According to the provisions of LACERA retirement plans, if the COLA percentage exceeds the maximum allowable amount, the excess percentage is accumulated to supplement future COLA benefits (called the COLA accumulation). LACERA uses the COLA accumulation balances available to fund the maximum increase allowable under each plan. The longer you have been retired (or receiving a survivor's allowance), the more COLA carryover you may have accumulated.