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The Cost of Living Adjustment (COLA) is 3.6% for 2018 and was approved by the Board of Fire and Police Pension Commissioners on April 19, 2018.&nbsp; The COLA will be effective July 1, 2018, and all eligible pensioners and DROP participants will receive an increase accordingly, beginning with the pension payment dated July 31, 2018.&nbsp;&nbsp;



<ul>
<li>Tiers 1 and 2 will receive 3.6%.</li>



<li>Tiers 3 through 6 and DROP will receive 3.0%*; and</li>



<li>Tiers 5 and 6 will have the additional 0.6% stored in a COLA bank.</li>
</ul>



*For new pensioners or DROP entrants (excluding Tier 2 DROP entrants), the first year’s COLA is prorated based on the number of completed months since the effective pension date, and may not receive the full 3.0%.



<h3 class="wp-block-heading">How does this affect LAFPP Pensioners?</h3>



This is an example of how a monthly pension benefit of $5,686 would be affected by this year’s COLA of 3.6%:



<h3 class="wp-block-heading">For Tiers 1 and 2</h3>



If 3.6% of $5,686 = $204.70



($5,686 x 0.036)



Then the monthly pension benefit would be increased to $5,890.70.



($5,686 + $204.70)



<h3 class="wp-block-heading">For Tiers 3 through 6 and DROP</h3>



If 3.0% of $5,686 = $170.58



($5,686 x 0.030)



Then the monthly pension benefit would be increased to $5,856.58.



($5,686 + $170.80)



Tiers 5 and 6 will receive a 0.6% in their COLA bank.



<h3 class="wp-block-heading">New Geographic Area</h3>



The COLA is based on the annual change in the Consumer Price Index (CPI),&nbsp;as published by the Bureau of Labor Statistics (BLS).&nbsp; In January 2018, the BLS introduced new geographic area samples for the CPI. The 2018 COLA was calculated using a 12-month period from March 2017 through February 2018, based on the new&nbsp;Los Angeles-Long Beach-Anaheim&nbsp;area sample.



For questions regarding the COLA, please contact the Retirement Services Section at (213) 279-3125 or (844) 88-LAFPP, ext. 93125. &nbsp;For detailed information on the calculation of the CPI, please visit the BLS website at&nbsp;<a href="http://www.bls.gov/cpi/" target="_blank" rel="noreferrer noopener" class="broken_link">http://www.bls.gov/cpi/</a>&nbsp;or call (202) 691-7000.

COLA for 2018

May 2024

April 2024

March 2024

February 2024

September 2024

January 2024

August 2024

July 2024

June 2024

December 2023

November 2024

October 2024

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