For Retired Employees:
The LACERS Board of Administration has approved the maximum allowable Cost-of-Living Adjustment (COLA) for eligible LACERS Retired Members and Beneficiaries at 3.0 percent for Tier 1 and Tier 1 Enhanced Members, and 2.0 percent for Tier 3 Members.
The COLA is based on the Consumer Price Index (CPI) in the Los Angeles area, which has been determined to be 7.4 percent for 2023. The maximum COLA is set by the City of Los Angeles Administrative Code at 3.0 percent for Tier 1 and Tier 1 Enhanced Members, and is set at 2.0 percent for Tier 3 Members. Tier 1 Retirees who have been retired for a full year or more will receive a 3.0 percent increase. The remaining 4.4 percent will be banked and applied in the future when the COLA is less than 3.0 percent.
According to LAAC § 4.1080.17, the Tier 3 COLA benefit is capped at 2.0 percent, and there is no banked benefit. Therefore, Tier 3 retirees will receive a COLA of 2.0 percent.
All Tier 1 and Tier 1 Enhanced Members who retired after June 30, 2022, will receive a COLA of 1/12th of the 3.0 percent for each full month of retirement completed by June 30, 2023. Similarly, all Tier 3 Members who retired after June 30, 2022, will receive a COLA of 1/12th of the 2.0 percent for each full month completed by June 30, 2023. The COLA will be included in all eligible Retired Members’ and Beneficiaries’ July 31, 2023, printed check or direct deposit.
Since the average CPI increase for last year exceeds the COLA caps, the LACERS Board of Administration has requested that the City Council review granting a discretionary COLA to its Members according to LAAC § 4.1023 and § 4.1080.17(c). Should the City Council decide to consider this item, it will be agendized and discussed at the City Council. LACERS continues to monitor this issue.