The Supplemental Cost of Living Adjustment (Supplemental COLA) maintains retirees’ purchasing power at no less than 85% of their original pension allowance. The Supplemental COLA is a non-vested (non-guaranteed) benefit which is evaluated and reauthorized annually by the Board of Retirement. It is funded by the Supplemental Retiree Benefits Reserve (SRBR). The Supplemental COLA is a separate benefit from the vested COLA.

Annual Supplemental COLA Date

April 1

Who Receives 2025 Supplemental COLA?

Note: This is contingent on the Board of Retirement approving the 2022 Supplemental COLA at its February 20, 2025 meeting.

Supplemental COLA Reflected Starting In Retirement Payment

April 30, 2025

Supplemental COLA FAQ

What Is Purchasing Power?

Purchasing power is the value of your dollars in terms of how much stuff they’ll buy. In the context of the Supplemental COLA, if it takes more than $1.15 today to purchase what $1.00 would purchase at the time of your retirement, you’ve lost at least 15% of your purchasing power. When this occurs, you may qualify for a Supplemental COLA to make up the difference and bring you back to 85% of your purchasing power.

How Do You Qualify For the Supplemental COLA?

As noted is the vested COLA posting, annual CPI increases that exceed the maximum legal percentage for your tier (2% or 3%) are banked for use in years that the CPI increase is below the maximum. So if the CPI is 4% and you can only get a 3% COLA, then 1% goes in your COLA bank. If you have a banked amount of more than 15%, you automatically qualify to receive Supplemental COLA.

How Much Supplemental COLA Will You Receive?

Your Supplemental COLA will be calculated individually each year based on your original retirement benefit, any accumulated COLA, and the percentage you have in the COLA bank. Your Supplemental COLA amount from the previous year has no connection with your new Supplemental COLA amount.

How Is This Year’s Supplemental COLA Different From Last Year’s?

• The cutoff date for Tier 1 members has shifted back by one year. As a result, Tier 1 members who retired between 04/02/1981, and 04/01/1982, will not receive a Supplemental COLA in 2025, even though they did in 2024. This change affects approximately 30 members. While these members are not receiving a Supplemental COLA this year, their retirement allowance has retained at least 85% of its original buying power, meaning their purchasing power has not eroded beyond the 15% threshold that triggers the Supplemental COLA. 
• The cutoff date for Tier 2 members stayed the same, so Tier 2 members who retired on or before 04/01/2007 will continue to receive a Supplemental COLA.
• Note: These changes are contingent on the Board of Retirement approving the 2022 Supplemental COLA at its February 20, 2025 meeting.

​Do You Need to Do Anything to Receive the Supplemental COLA?

No. As detailed above, calculations for who receives the Supplemental COLA are standardized, and if you qualify, you will receive the Supplemental COLA automatically in your monthly ACERA retirement benefit.