The Cost of Living Adjustment (COLA) is 1.0% for 2021 and was approved by the Board of Fire and Police Pension Commissioners on March 18, 2021. The COLA will be effective July 1, 2021, and all eligible pensioners and Deferred Retirement Option Plan (DROP) participants will receive an increase accordingly, beginning with the pension payment dated July 31, 2021. For new pensioners or DROP entrants in Tiers 3-6, the first year’s COLA is prorated based on the number of complete months since the pension effective date, therefore these members may not receive the full 1.0%.

• Tiers 1 & 2 retirees, beneficiaries, and DROP participants will receive 1.0%. 
• Tiers 3 & 4 retirees, beneficiaries, and DROP participants will receive up to 1.0%. 
• Tiers 5 & 6 retirees, beneficiaries, and DROP participants will receive up to 1.0%, and those with an available COLA bank balance will withdraw up to 0.5% from their COLA bank*, for a total COLA of up to 1.5%. (NOTE: This leaves the COLA bank with a zero balance.)   

*Must have retired or entered DROP with a pension effective date prior to June 2, 2020, in order to have an 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 U.S. Bureau of Labor Statistics (BLS).  Pursuant to the City of Los Angeles Charter/Administrative Code, the 2021 COLA was calculated based on the Los Angeles-Long Beach-Anaheim area using a 12-month period from March 2020 through February 2021. 

How does this affect LAFPP Pensioners? 

This is an example of how a monthly pension benefit of $6,386  would be affected by this year’s COLA of 1.0%:  

For Tiers 1 – 4 

If 1.0% of $6,386 = $63.86 

($6,386 x 0.010) 

Then the monthly pension benefit would be increased to $6,449.86. 

($6,386 + $63.86) 

For Tiers 5 - 6 

If 1.5% of $6,386 = $95.79 

($6,386 x 0.015) 

Then the monthly pension benefit would be increased to $6,481.79 

($6,386 + $95.79) 

Questions? 

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

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