Cost-of-Living Adjustment (COLA)

A cost-of-living increase of 3% is granted each year once a member retires.

The COLA is paid in the first anniversary month of your retirement benefit, which also establishes the date for future increases. Future increases are calculated on the original 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.