Tier 3 COLA Overview
Is there a maximum COLA per year?
Yes: Not to exceed an increase or decrease of 3%.
In the event there is a negative COLA, the pension amount will not be reduced less than the member’s or qualified survivor’s original pension amount.
When is your COLA applied to your monthly benefit?
Your benefit is adjusted on July 1 of each year to reflect the change in the cost of living published by the Bureau of Labor Statistics, not to exceed an increase or decrease of 3%.
When you become a pensioner, the first year’s COLA is prorated and based on the number of completed months you have been on the pension roll.
Are you eligible for a discretionary COLA?
Once every three years, the City Council may grant a discretionary COLA. The discretionary COLA cannot exceed one-half the difference between the CPI and the actual increase granted during the preceding three years.
When is a COLA applied to a qualified survivor’s monthly benefit?
Your qualified survivor will continue to receive COLAs, according to the provisions of your plan, on July 1 each year.