American consumers continue to feel the squeeze of inflation, with rising grocery prices and increased costs of living for essential goods and services. For LAGERS retirees, this means that everyday expenses, from food and utilities to healthcare, are consuming a larger portion of their fixed income.
To help offset these challenges, the LAGERS Board of Trustees voted to approve a cost-of-living adjustment (COLA) for eligible retirees starting Oct. 1.
COLAs provide a crucial financial cushion that allows LAGERS retirees to retain full purchasing power with their hard-earned benefit, even as the cost of living fluctuates from year to year.
Does everyone receive the same COLA?
COLA amounts will vary by retiree depending on your effective retirement date, but LAGERS’ goal is to ensure that all retirees are either at or working toward reaching 100% purchasing power of your original benefit. By law, an adjustment can’t exceed 4% in any given year. Because we have been in a period of high inflation, this means some retirees may still be hitting the 4% annual cap as LAGERS continues to work every retiree back to full purchasing power.
Will I receive a notice with my COLA amount?
No, you will not receive a notice with your new COLA amount. Your 2025 adjustment will appear on your Oct. 1 payment. You can view your new payment amount before Oct. 1 by logging on to your myLAGERS account any time after Sept. 1.
Why did I not receive a COLA?
If you did not receive a COLA on Oct. 1, you may not be eligible yet. To qualify for your first cost of living adjustment, you must be retired a full 12 consecutive months, including an Oct. 1. A common misconception is that retiring after Oct. 1 could reduce your benefit because you won’t be eligible for your first year’s cost-of-living adjustment (COLA). While it’s true that retirees must be retired for twelve full months before receiving their first COLA, LAGERS adjustments are cumulative. If you retire after Oct. 1, your first adjustment will be larger the following year to ensure your benefit maintains 100% of its purchasing power.
For additional questions about COLAs, please reach out to our benefits team at 1-800-447-4334 or
[email protected].
