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2009 Cost of Living Adjustments (COLAs)
The Cost of Living Adjustment (COLA) for 2009 is 0.0%.
Pursuant to the Charter and the Administrative Code, pensioners in Tiers 1, 2, 3 and 4 will not receive an adjustment this year. However, eligible Tier 5 pensioners, including Tier 5 DROP participants, will receive an increase up to 3%, based on the accumulation in their COLA bank. To determine the amount of the increase, Tier 5 pensioners may view COLA Bank Balances.
Tier 5 increases will be reflected in the pension payment dated July 31, 2009, effective July 1, 2009.
Although COLAs for retirees in different retirement systems are typically based on the movement in the Consumer Price Index (CPI), they can vary across the country. The differences are attributed to two key factors used by pension systems to measure the CPI – 1) the 12-month period and 2) the geographic area. For example, the Charter and the Administrative Code require that we use the CPI for the Los Angeles-Riverside-Orange County area for all consumers for the 12-month period ending February. Alternatively, the Los Angeles City Employees’ Retirement System (LACERS) is required to look at the CPI change for the same metropolitan area for the prior calendar year.
The following table shows the historical CPI change for all urban consumers in the Los Angeles-Riverside-Orange County area for the 12-month periods ending February and December, and the National CPI 12-month change ending December:
| Year |
Los Angeles - Riverside - Orange County |
National |
Mar - Feb
(used by LAFPP)
|
Jan - Dec |
Jan - Dec |
| 1967 |
2.1% |
2.4% |
3.1% |
| 1968 |
4.2% |
4.1% |
4.2% |
| 1969 |
3.7% |
4.5% |
5.5% |
| 1970 |
5.3% |
5.2% |
5.7% |
| 1971 |
3.7% |
3.6% |
4.4% |
| 1972 |
3.6% |
3.2% |
3.2% |
| 1973 |
4.4% |
5.6% |
6.2% |
| 1974 |
8.5% |
10.3% |
11.0% |
| 1975 |
11.7% |
10.6% |
9.1% |
| 1976 |
7.6% |
6.8% |
5.8% |
| 1977 |
7.8% |
6.9% |
6.5% |
| 1978 |
5.7% |
7.4% |
7.6% |
| 1979 |
8.2% |
10.7% |
11.3% |
| 1980 |
17.7% |
15.8% |
13.5% |
| 1981 |
10.1% |
9.8% |
10.3% |
| 1982 |
9.2% |
5.9% |
6.2% |
| 1983 |
0.5% |
1.8% |
3.2% |
| 1984 |
4.6% |
4.5% |
4.3% |
| 1985 |
4.6% |
4.6% |
3.6% |
| 1986 |
4.0% |
3.2% |
1.9% |
| 1987 |
3.8% |
4.3% |
3.6% |
| 1988 |
4.4% |
4.6% |
4.1% |
| 1989 |
4.8% |
5.1% |
4.8% |
| 1990 |
6.5% |
5.9% |
5.4% |
| 1991 |
4.7% |
4.0% |
4.2% |
| 1992 |
3.6% |
3.6% |
3.0% |
| 1993 |
3.5% |
2.6% |
3.0% |
| 1994 |
1.5% |
1.3% |
2.6% |
| 1995 |
1.5% |
1.5% |
2.8% |
| 1996 |
1.1% |
1.9% |
3.0% |
| 1997 |
1.9% |
1.6% |
2.3% |
| 1998 |
1.2% |
1.4% |
1.6% |
| 1999 |
2.2% |
2.3% |
2.2% |
| 2000 |
2.9% |
3.3% |
3.4% |
| 2001 |
3.6% |
3.3% |
2.8% |
| 2002 |
2.7% |
2.8% |
1.6% |
| 2003 |
3.6% |
2.6% |
2.3% |
| 2004 |
1.9% |
3.3% |
2.7% |
| 2005 |
3.8% |
4.5% |
3.4% |
| 2006 |
5.1% |
4.3% |
3.2% |
| 2007 |
3.5% |
3.3% |
2.8% |
| 2008 |
3.1% |
3.5% |
3.8% |
| 2009 |
0.0% |
-- |
-- |
| Total |
198.1% |
197.9% |
195.2% |
To see how we track the CPI, you may print How to Access CPI Data, for step-by-step instructions to retrieve current and historical CPI information.
If you have COLA questions, please call DROP/Retired Member Services at (213) 978-4495, or email us at pen.pensions@lacity.org.
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