COST OF LIVING ADJUSTMENTS (COLA)
Federated
Retirees under Tier 1 and Tier 1 Classic are eligible for a 3% annual cost-of-living adjustment (COLA). Regular COLA’s are compounded and paid each April. There is no prorating of COLA.
Retirees under Tier 2a and Tier 2b are eligible for annual cost-of-living adjustment (COLA) limited to the lesser of the increase in the Consumer Price Index (San Jose-San Francisco-Oakland, U.S. Bureau of Labor Statistics index, CPI-U, December to December), or a back-loaded 2% COLA per fiscal year. The back-loaded COLA shall be calculated as follows:
- Service at retirement of 1-10 years: 1.25% per year
- Service at retirement of 1-10 years and hired before June 16, 2017: 1.5%
- Service at retirement of 11-20 years: 1.5% per year
- Service at retirement of 21-25 years: 1.75% per year
- Service at retirement of 26 years and above: 2.0% per year
The first COLA will be prorated based on the number of months retired.
See the municipal code here.