What is COLA?
COLA stands for Cost Of Living Allowance. Retirees are eligible to receive annual COLA increases beginning five years from their group retirement date. The COLA is fixed at 3% each year, and is paid on the first full pay period in April. Upon retirement, each retiree is assigned a group date of April 1st, based on the fiscal year in which he or she retired. The fiscal year runs from October 1 through September 30. The group date determines when the retiree’s Cost of Living Increase will commence. For example: If you retired on Sept. 30, 2004, your group date would be April 1, 2004. Your COLA would begin the first full pay period in April 2009. If you retired Oct. 1, 2004, your group date would be April 1, 2005. Your COLA would begin the first full pay period in April 2010. In this example, by retiring one day sooner, your COLA will commence a full year earlier. When setting your retirement date, the Pension Office will explain your group date based on when you would like to retire. Of
