Yes: Not to exceed an increase or decrease of 3%.

A COLA bank “stores” amounts over the 3% cap. In years in which the COLA is below 3%, the difference is deducted from the bank, if available.  

In the event there is a negative COLA, the pension amount will not be reduced less than the member’s or qualified survivor’s original pension amount.

Upon retirement, your COLA bank begins with 0.0%. Each subsequent year’s COLA is applied to your benefit on July 1, not to exceed an increase or decrease of 3%.

When you become a pensioner, the first year’s COLA is prorated and based on the number of completed months you have been on the pension roll.

Once every three years, the City Council may grant a discretionary COLA. The discretionary COLA cannot exceed one-half the difference between the CPI and the actual increase granted during the preceding three years.

If the City Council grants a discretionary COLA, it is deducted from your COLA bank.

Your qualified survivor will continue to receive COLAs, according to the provisions of your plan, on July 1 each year.

For more information, please refer to the Tier 6 Pension Plan Summary Plan Description (SPD).