The Supplemental Targeted Adjustment for Retirees (STAR) is a cost-of-living adjustment (COLA) program designed to ease the effects of inflation for retirees and eligible survivors whose allowance has lost more than 20 percent of its purchasing power since retirement. The STAR COLA program is available for contributory plan retirees and their beneficiaries only; Plan E retirees are not eligible.
No Additional STAR COLA in 2021
Based on actuarial review as of August 21, 2020, all retirees and eligible survivors in Plans A, B, C, and D have current COLA Accumulation accounts below the 20 percent threshold for providing additional STAR benefits. Benefits to existing STAR participants are not affected and will continue unchanged.
How the STAR COLA Is Determined
Each year, the Board of Retirement (BOR) determines whether a STAR benefit is due to any LACERA retirees based on inflation experienced over their retirement years. Inflation is measured by increases in the Los Angeles-Long Beach-Anaheim Consumer Price Index (CPI).
The CPI change from the prior year is compared to the maximum allowable cost-of-living percentage increase payable by LACERA on April 1 (3 percent for General and Safety Plans A; 2 percent for General and Safety Plan B, General Plans C, D, and G, and Safety Plan C). In years where the change in CPI is greater than the maximum cost-of-living increase, the difference between these two percentages is added to the COLA Accumulation.
The accumulation of differences each year reflects how much purchasing power has been lost from a retiree's original retirement benefits. By law, the BOR may provide STAR increases after the accumulation exceeds 20 percent. The BOR also determines whether the benefit should be an ad hoc benefit (paid for one year only) or a permanent benefit (added to the member’s base retirement allowance).
See the percentage of COLA you have accumulated by reviewing the current COLA accumulation chart.