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Annual COLA for April 2006

P. Annual COLA for April 2006. February 15, 2006. Outline. CERL Guidance Consumer Price Index COLA Calculation COLA Bank Inflation Comparisons. COLA.

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Annual COLA for April 2006

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  1. P Annual COLA for April 2006 February 15, 2006

  2. Outline • CERL Guidance • Consumer Price Index • COLA Calculation • COLA Bank • Inflation Comparisons

  3. COLA • 31870.The board shall before April 1 of each year determine whether there has been an increase or decrease in the cost of living as provided in this section. Notwithstanding Section 31481 or any other provision of this chapter (commencing with Section 31450),every retirement allowance, optional death allowance, or annual death allowance payable to or on account of any member, of this system or a superseded system, who retires or dies or who has retired or diedshall, as of April 1st of each year, be increased or decreased by a percentageof the total allowance then being received found by the board to approximate to thenearest one-half of 1 percentthe percentage of annual increase or decrease in the cost of living as of January 1st of each year as shown by the then current Bureau of Labor Statistics Consumer Price Index for All Urban Consumers for the area in which the county seat is situated,but such change shall not exceed 2 percent per year;…

  4. COLA Bank • 31870 (cont). …however, the amount of any cost-of-living increase or decrease in any year which is not met by the maximum annual change of 2 percent in allowances shall be accumulated to be met by increases or decreases in allowances in future years; except that no decrease shall reduce the allowance below the amount being received by the member or his beneficiary on the effective date of the allowance or the application of this article, whichever is later.

  5. Consumer Price Index • US City Average • Northeast Urban • Midwest Urban • South Urban • West Urban • Anchorage, AK • Denver-Boulder-Greeley, CO • Honolulu, HI • Los Angeles-Riverside-Orange County, CA • Phoenix-Mesa, AZ • Portland-Salem, OR-WA • San Diego, CA • San Francisco-Oakland-San Jose, CA • Seattle-Tacoma-Bremerton, WA

  6. Consumer Price IndexAll Urban ConsumersSan Francisco-Oakland-San Jose

  7. COLA Calculation • Step 1 • Annual Average 2005 / Annual Average 2004 • 202.7 / 198.8= 1.96% • Step 2 • Round to nearest ½% • 1.96% rounds to 2.00%

  8. COLA BANK

  9. COLA BANK

  10. COLA BANK

  11. COLA

  12. CPI Comparison 2005

  13. National Inflation Components

  14. Questions

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