COLA 2020


The Cost of Living Adjustment (COLA) is 3.4% for 2020 and was approved by the Board of Fire and Police Pension Commissioners on March 19, 2020. The COLA will be effective July 1, 2020, and all eligible pensioners and DROP participants will receive an increase accordingly, beginning with the pension payment dated July 31, 2020. 

  • Tiers 1 and 2 will receive 3.4%. 
  • Tiers 3 through 6 and DROP participants will receive up to 3.0%*; and 
  • Tiers 5 and 6 will have 0.4% added to their COLA bank balance. The new COLA bank balance will be 0.5%.** 

* For new pensioners or DROP entrants in Tiers 3-6, the first year’s COLA is prorated based on the number of completed months since the pension effective date, therefore these members may not receive the full 3%. 

**Must have retired or entered DROP with a pension effective date prior to June 2, 2019, in order to have available COLA bank balance. 

Consumer Price Index/Bureau of Labor Statistics 

The COLA is based on the annual change in the Consumer Price Index (CPI) as published by the Bureau of Labor Statistics (BLS).  The 2020 COLA was calculated based on the Los Angeles-Long Beach-Anaheim area using a 12-month period from March 2019 through February 2020. 

How does this affect LAFPP Pensioners? 

This is an example of how a monthly pension benefit of $5,890 would be affected by this year’s COLA of 3.4%: 

For Tiers 1 and 2 

If 3.4% of $5,890 = $200.26 

($5,890 x 0.034) 

Then the monthly pension benefit would be increased to $6,090.26. 

($5,890 + $200.26) 


For Tiers 3 – 6 

If 3.0% of $5,890 = $176.70 

($5,890 x 0.030) 

Then the monthly pension benefit would be increased to $6,066.70 

($5,890 + $176.70) 


For questions regarding the COLA, please contact the Retirement Services Section at (213) 279-3125 or (844) 88-LAFPP, ext. 93125.  

For detailed information on the calculation of the CPI, please visit the BLS website or call (202) 691-7000.