COLA Increase for 2021
At its January 26, 2021 meeting, the Board of Retirement approved a cost-of-living adjustment (COLA) for most retirees and beneficiaries.
At its January 26, 2021 meeting, the Board of Retirement approved a cost-of-living adjustment (COLA) for retirees and beneficiaries in accordance with each plan as shown on the chart below:
|
Retiree or Beneficiary’s |
Date of Retirement |
2021 COLA % |
COLA BANK % |
|---|---|---|---|
|
Plan 1 - General and Safety |
On or before 4/1/2021 |
1.5% |
n/a |
|
Plan 1 – Probation |
On or before 4/1/2019 4/2/2019 – 4/1/2020 4/2/2020 – 4/1/2021 |
3.0% 2.0% 1.5% |
1.5% decrease 0.5% decrease n/a |
|
Plan 2 – All Members |
On or before 4/1/2021 |
1.5% |
n/a |
|
Plan 3 |
n/a |
n/a |
n/a |
|
Plan 4, 5, 6, 7 - All Members |
On or before 4/1/2021 |
1.5% |
n/a |
This COLA applies to eligible retirees and beneficiaries who retired on or before April 1, 2021, and the amount of the COLA will depend on the retirement plan.
The COLA for General and Safety Plan 1 is 1.5%.
The COLA for Probation Plan 1 varies depending on the date of retirement. For those that retired on or before 4/1/2019, the COLA will be 3%. Those that retired between 4/2/2019 – 4/1/2020 will receive a 2% COLA. Those that retire(d) between 4/2/2020 – 4/1/2021 will receive a 1.5% COLA. Probation Plan 1 members receiving more than 1.5% are utilizing the remaining balance in their COLA Bank and now have a zero COLA Bank balance.
All Plan 2 members will receive 1.5%, and the COLA for Plans 4, 5, 6 and 7 is also 1.5%. Plan 3 does not provide a COLA.
All COLAs will be paid beginning with the April 30, 2021 benefit payment.
Current employees considering retirement: If you want to take advantage of this year’s COLA, you must retire on or before April 1. If you’re thinking about retirement, contact SamCERA as soon as possible so your paperwork can be processed in time for you to receive your first retirement benefit check on April 30.