Each year the LACERS Board approves Cost-of-Living Adjustments (COLAs)for Tier 1 and Tier 3 Retired Members and beneficiaries based on the Consumer Price Index (CPI) for the Los Angeles area during the previous calendar year. The COLA becomes effective July 1st of each year.
You will receive the COLA if you are a retired LACERS Member or an eligible surviving spouse/domestic partner who receives a continuance benefit. The amount of COLA you receive depends on your Tier and retirement date. If you retire prior to July 1 in any year, your COLA will be pro-rated at 1/12th of the increase for each whole month you have been retired.
Maximum COLA Per Tier
| Tier |
Maximum COLA |
Bank |
| 1 and 1E |
3.0% |
Yes |
| 3 |
2.0% |
No |
COLA Bank - Tier 1 and Tier 1E Members Only
Because the COLA cannot exceed 3.0%, when the CPI is greater than 3.0%, the difference between the maximum 3.0% and the actual CPI will be set aside in a COLA bank. In years when the CPI increase is less than 3.0%, and if you have a bank balance available from previous years, the COLA bank will be utilized to increase your COLA up to the maximum 3.0% for the year. If you have a zero bank balance, your COLA will not be increased.
Requirements to Receive the COLA Bank
Only those retirees (or continuing survivors) whose benefits commenced on July 1 and continued for one full Fiscal Year will receive COLA Bank, if any.
For example, the July 1, 2024 COLA bank is 0.5% for a July 1, 2023 retirement date.
COLA Bank Example
| Consumer Price Index (CPI) |
Approved COLA |
Maximum COLA |
Difference |
COLA Amount Banked for Future Years |
| 3.5% |
3.0% |
3.0% |
3.5%-3.0% = 0.5% |
0.5% |
July 2024 Approved COLA
| Membership |
Initial Retirement Date |
Excessed Banked COLA Availability |
COLA Effective July 1, 2024 |
| Tier 1 and Tier 1 Enhanced participants and beneficiaries |
On or before July 1, 2023
|
- 3.0% Maximum Increase
- Excess COLA 0.5% will be banked
|
3.0% |
| Tier 1 and Tier 1 Enhanced participants and beneficiaries with less than one full year of retirement |
July 2, 2023 to June 30, 2024 |
- Prorated COLA increase of 1/12th for each full month of retirement
- Excess will not be banked for less than one full year of retirement
|
1/12th of 3.0% each full month retired |
| Tier 3 participants and beneficiaries |
On or before July 1, 2023 |
- 2.0% maximum increase
- No COLA Bank
|
2.0%
|
| Tier 3 participants and beneficiaries with less than one full year of retirement |
July 2, 2023 to June 30, 2024 |
- Prorated COLA increase of 1/12th for each full month of retirement
- No COLA Bank
|
1/12th of 2.0% each full month retired
|
The 2024 COLA was approved during the February 27, 2024 Board Meeting.
July 2023 Approved COLA
| Membership |
Initial Retirement Date |
Excessed Banked COLA Availability |
COLA Effective July 1, 2023 |
| Tier 1 and Tier 1 Enhanced participants and beneficiaries |
On or before July 1, 2022
|
- 3.0% Maximum Increase
- Excess COLA 4.4% will be banked
|
3.0% |
| Tier 1 and Tier 1 Enhanced participants and beneficiaries with less than one full year of retirement |
July 2, 2022 to June 30, 2023 |
- Prorated COLA increase of 1/12th for each full month of retirement
- Excess will not be banked for less than one full year of retirement
|
1/12th of 3.0% each full month retired |
| Tier 3 participants and beneficiaries |
On or before July 1, 2022 |
- 2.0% maximum increase
- No COLA Bank
|
2.0%
|
| Tier 3 participants and beneficiaries with less than one full year of retirement |
July 2, 2022 to June 30, 2023 |
- Prorated COLA increase of 1/12th for each full month of retirement
- No COLA Bank
|
1/12th of 2.0% each full month retired
|
The 2023 COLA was approved during the April 11, 2023 Board Meeting.
