What is COLA Accumulation?
COLA Accumulation is the accumulated percentage carryover that occurs in years when the BOR authorizes a COLA percentage adjustment in excess of the maximum 2 percent adjustment permitted under Plan E. (All COLA adjustments authorized by the BOR are based on the annual CPI and take effect April 1.) Think of your COLA Accumulation as a bank. In years where the BOR authorizes a COLA increase greater than 2 percent, the excess percentage is “deposited” in your COLA “bank” and “saved” for possible use in the future. In years where the BOR authorizes a COLA increase of less than 2 percent, the difference between 2 percent and the percentage granted is “withdrawn” from your COLA Accumulation (assuming your COLA Accumulation is sufficient)to fund the shortfall and allow you to receive the maximum 2 percent COLA increase permitted under Plan E. For example: If the CPI change is 3.0 percent, the BOR will grant the maximum 2.0 percent COLA increase and add the excess 1.0 percent to your COLA Acc
