What is STAR COLA, and how is the benefit determined?
The Supplemental Targeted Adjustment for Retirees (STAR) or STAR COLA Program is designed to ease the effects of inflation for a retiree whose retirement allowance has lost more than 20 percent of its purchasing power since retirement. Eligible retirees are determined by plan and retirement date. Each year, the Board of Retirement determines whether a STAR benefit is due to any LACERA retirees based on inflation experienced over their retirement years, offset by April 1 COLAs the retirees have already received. Inflation is measured by increases in the Los Angeles-Riverside-Orange County, CA Consumer Price Index (CPI). The Board also determines whether the benefit should be an ad-hoc benefit (paid for one year only) or a permanent benefit (added to the base retirement allowance for the member’s life).
