Thursday, February 20, 2014
Annual Cost of Living Adjustment (COLA) approved by Board of Retirement
OCERS retirees will see a cost of living adjustment (COLA) beginning with their May 1, 2014 monthly retirement allowance.
At its regular meeting held on February 18, 2014, the Board of Retirement approved a recommendation to adjust all applicable retirement allowances in accordance with the 1.08 percent change in the Consumer Price Index (CPI). Per Government Code Section 31870.1, OCERS annually adjusts the benefit allowances relative to the increase or decrease in the CPI, up to a maximum of 3 percent. The COLA will affect benefit recipients in different ways depending upon when they retired.
For benefit recipients who began receiving benefits on or before April 1, 1971 through April 1, 1985, OCERS will grant a 3 percent COLA and reduce the COLA banks by 2 percent. For those benefit recipients who began receiving benefits between April 2, 1985 and April 1, 1986, OCERS will increase those benefit allowances by 2 percent and reduce the COLA banks by 1 percent.
For those benefit recipients who began receiving benefits between April 2, 1986 and April 1, 2014, OCERS will increase benefit allowances by 1 percent with no reduction in COLA banks.
Because the COLA goes into effect on April 1, payees will see the COLA adjustment on their May 1 payment. For more information about how the Consumer Price Index (CPI) impacts the COLA, as well as determining how much retireesí (based on year of retirement) have in their individual COLA bank, see the "COLA Information" page on OCERSí Web site.
The next Investment Committee meeting will be held at 9 a.m. on Wednesday, February 26, 2014; the next regular Board of Retirement meeting will be held at 9 a.m. on Monday, March 17, 2014.