Survivor Benefits

Cost-of-Living Adjustment (COLA)
A cost-of-living increase of 3% is granted each year.

The COLA is paid in the first anniversary month of the survivor benefit, which also establishes the date for future increases. Survivors of disability recipients receive a COLA effective with the first anniversary of the member’s disability benefit. Future increases are calculated on the original survivor benefit and are not compounded over the previous year. The cost-of-living increase is added to the regular monthly benefit. An example of how the increase is calculated follows.

Cost-of-Living Adjustment (COLA) Example
Benefit recipient’s original benefit amount	$2,000
First anniversary COLA (3%)	$     60
New benefit amount	$2,060
Second anniversary COLA (3%)	$     60
New benefit amount	$2,120

COLAs will be calculated on a different amount for retirees who reselect a new plan of payment after retirement.