Cost of Living Adjustment (COLA)
FCERA retirees in Tiers I, II and III are entitled to a Cost of Living Adjustment (COLA) of up to 3% annually. Each year, the Board of Retirement will grant the COLA based on the previous year’s Consumer Price Index (CPI) for the West Region.
The COLA is generally granted at a mid-February meeting. COLA Announcements are posted to the front page of this website and sent out in the Spring Newsletter.
The maximum COLA that can be granted in any given year is 3.0%, and any excess will be tracked on a retirement year basis, creating a “COLA bank.” The COLA bank is then available to increase the COLA granted to the maximum of 3% in subsequent years, if the change in cost-of-living is less than the maximum adjustment.
Members in Tiers IV and V are not eligible for any COLA.