Cost of Living Questions and Answers

When will I receive my cost of living increase?

The monthly increase will be included in the benefit payment you receive at the END OF APRIL.

What does the word "COLA" on my pension check stub mean?

"COLA" means "Cost of Living Allowance"

Why doesn't the "Base" amount on my pension check stub change?

The "Base" amount is only calculated once at the time you retire. It will not change annually. However, the "COLA" amount increases each year.

How is my Cost of Living Allowance Calculated?

Look at last month's check stub. Your monthly "Base" and "COLA" amounts are listed on the left side of the stub. Add your "Base" and "COLA", then multiply the sum by your % cost of living increase to calculate your 2008 increase.

What is a COLA Bank for Plan 1 members?

Employees who were hired before July 6, 1980 may accumulate a COLA Bank.
These members are in Plan 1 and are entitled to receive an annual cost of living increase equal to the increase in the Consumer Price Index (CPI-SFO), but not to exceed 5%* each year.

When inflation is greater than 5%*, the difference between CPI-SFO and 5%* is "deposited" in the member's COLA Bank.

Then, in years when inflation is less than 5%*, the member receives a cost of living increase based on the approved increase plus a "withdrawal" from the member's COLA Bank to bring the total cost of living increase up to the 5%* maximum.