STAR COLA

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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.

2025 STAR COLA Awarded

Effective January 1, 2025, eligible members (or their survivors) will receive a permanent increase to their monthly retirement allowance. This adjustment will be reflected on the January 31, 2025, payment. The STAR COLA amounts are based on the following criteria:

  • General Plan B, C, D, and Safety Plan B members (or their survivors) who retired prior to March 31, 1991: 1.5 percent increase
  • General Plan B, C, D, and Safety Plan B members with a retirement date between April 1, 1991, and March 31, 1992: 0.3 percent increase

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.

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