Cost of Living Adjustments (COLA)
The Cost of Living Adjustments is an increase made to your retirement allowance every April 1. Each year, the change from December to December in the San Francisco Bay Area’s Consumer Price Index (CPI) is rounded to the nearest half percent and becomes the COLA amount. The amount is announced on this page in the first week of February each year.
Annual COLA Announcement
First week of February
Annual COLA Date
April 1
Maximum Annual COLA
| Tier 1 and Tier 3 | 3% |
| Tier 2 and Tier 4 | 2% |
2023–2024 CPI Change
2.5%
2025 COLA Increase
| Tier 1 and Tier 3 | Retired on or before April 1, 2023 | 3.0% |
| Tier 1 and Tier 3 | Retired April 2, 2023 to April 1, 2025 | 2.5% |
| Tier 2 and Tier 4 | Retired on or before April 1, 2025 | 2.0% |
COLA Reflected in Retirement Payment
April 30, 2025
COLA Maximums and the COLA Bank
The maximum statutory annual COLA increase is 3% for Tier 1 and 3 members and 2% for Tier 2 and 4 members. In years where the CPI increase is greater than these percentages, the difference between your maximum and the rounded CPI increase is automatically banked for future years. The banked percentage is used in years when the COLA is less than the maximum.
On April 1, 2025, Tier 1 and 3 members who retire on or before April 1, 2023 used 0.5% from their COLA Bank to achieve their maximum 3% COLA. Tier 1 and 3 members who retired April 2, 2023 to April 1, 2025 did not bank any percentage points. Tier 2 and 4 members banked 0.5%.
COLA banking happens automatically, and you don’t need to take any action.
COLA Banked Amounts 2025
| CPI Change | Banked % Applied | COLA Applied | 2025 Banked % | ||||
|---|---|---|---|---|---|---|---|
|
Tier 1 and Tier 3 Retired on or before April 1, 2023 |
2.5% | + | 0.5% | − | 3.0% | = | 0.0% |
|
Tier 1 and Tier 3 Retired April 2, 2023 − April 1, 2025 |
2.5% | + | 0.0% | − | 2.5% | = | 0.0% |
| Tier 2 and Tier 4 | 2.5% | + | 0.0% | − | 2.0% | = | 0.5% |
Tier 1 and 3 COLA Bank Balances 2025
| Retirement Date | COLA Bank Balance 4/1/2024 | 2025 Banked Withdrawal | COLA Bank Balance 4/1/2025 | ||
|---|---|---|---|---|---|
| On or Before 7/1/67 | 73.5% | - | 0.5% | = | 73.0% |
| 7/1/67 to 6/30/68 | 73.0% | - | 0.5% | = | 72.5% |
| 7/1/68 to 4/1/69 | 72.0% | - | 0.5% | = | 71.5% |
| 4/2/69 to 4/1/70 | 69.5% | - | 0.5% | = | 69.0% |
| 4/2/70 to 4/1/71 | 67.0% | - | 0.5% | = | 66.5% |
| 4/2/71 to 4/1/72 | 65.0% | - | 0.5% | = | 64.5% |
| 4/2/72 to 4/1/73 | 64.0% | - | 0.5% | = | 63.5% |
| 4/2/73 to 4/1/74 | 63.5% | - | 0.5% | = | 63.0% |
| 4/2/74 to 4/1/75 | 60.5% | - | 0.5% | = | 60.0% |
| 4/2/75 to 4/1/76 | 53.5% | - | 0.5% | = | 53.0% |
| 4/2/76 to 4/1/77 | 46.5% | - | 0.5% | = | 46.0% |
| 4/2/77 to 4/1/78 | 44.0% | - | 0.5% | = | 43.5% |
| 4/2/78 to 4/1/79 | 39.5% | - | 0.5% | = | 39.0% |
| 4/2/79 to 4/1/80 | 33.0% | - | 0.5% | = | 32.5% |
| 4/2/80 to 4/1/81 | 27.5% | - | 0.5% | = | 27.0% |
| 4/2/81 to 4/1/82 | 15.5% | - | 0.5% | = | 15.0% |
| 4/2/82 to 4/1/83 | 5.5% | - | 0.5% | = | 5.0% |
| 4/2/83 to 4/1/17 | 3.0% | - | 0.5% | = | 2.5% |
| 4/2/17 to 4/1/22 | 2.5% | - | 0.5% | = | 2.0% |
| 4/2/22 to 4/1/23 | 1.5% | - | 0.5% | = | 1.0% |
| 4/2/23 to 4/1/24 | 0.0% | - | 0.0% | = | 0.0% |
| 4/2/24 to 4/1/25 | 0.0% | - | 0.0% | = | 0.0% |
Tier 2 and 4 COLA Bank Balances 2025
| Retirement Date | COLA Bank Balance 4/1/2024 | 2025 Banked Amount | COLA Bank Balance 4/1/2025 | ||
|---|---|---|---|---|---|
| On or Before 4/1/85 | 43.0% | + | 0.5% | = | 43.5% |
| 4/2/85 to 4/1/86 | 39.5% | + | 0.5% | = | 40.0% |
| 4/2/86 to 4/1/87 | 37.5% | + | 0.5% | = | 38.0% |
| 4/2/87 to 4/1/88 | 36.5% | + | 0.5% | = | 37.0% |
| 4/2/88 to 4/1/89 | 35.0% | + | 0.5% | = | 35.5% |
| 4/2/89 to 4/1/90 | 32.5% | + | 0.5% | = | 33.0% |
| 4/2/90 to 4/1/91 | 30.5% | + | 0.5% | = | 31.0% |
| 4/2/91 to 4/1/92 | 26.5% | + | 0.5% | = | 27.0% |
| 4/2/92 to 4/1/93 | 25.0% | + | 0.5% | = | 25.5% |
| 4/2/93 to 4/1/97 | 24.5% | + | 0.5% | = | 25.0% |
| 4/2/97 to 4/1/98 | 24.0% | + | 0.5% | = | 24.5% |
| 4/2/98 to 4/1/99 | 22.0% | + | 0.5% | = | 22.5% |
| 4/2/99 to 4/1/00 | 21.0% | + | 0.5% | = | 21.5% |
| 4/2/00 to 4/1/01 | 19.0% | + | 0.5% | = | 19.5% |
| 4/2/01 to 4/1/07 | 15.5% | + | 0.5% | = | 16.0% |
| 4/2/07 to 4/1/12 | 14.0% | + | 0.5% | = | 14.5% |
| 4/2/12 to 4/1/14 | 13.0% | + | 0.5% | = | 13.5% |
| 4/2/14 to 4/1/15 | 12.5% | + | 0.5% | = | 13.0% |
| 4/2/15 to 4/1/16 | 12.0% | + | 0.5% | = | 12.5% |
| 4/2/16 to 4/1/17 | 11.0% | + | 0.5% | = | 11.5% |
| 4/2/17 to 4/1/18 | 9.5% | + | 0.5% | = | 10.0% |
| 4/2/18 to 4/1/19 | 8.5% | + | 0.5% | = | 9.0% |
| 4/2/19 to 4/1/20 | 6.0% | + | 0.5% | = | 6.5% |
| 4/2/20 to 4/1/22 | 5.5% | + | 0.5% | = | 6.0% |
| 4/2/22 to 4/1/23 | 3.5% | + | 0.5% | = | 4.0% |
| 4/2/23 to 4/1/24 | 0.5% | + | 0.5% | = | 1.0% |
| 4/2/24 to 4/1/25 | 0.0% | + | 0.5% | = | 0.5% |
More COLA Info
When Is the Annual COLA Announced?
The COLA amount that will be applied on April 1 is announced on this page in the first week of February each year.
New Retirees
If your first day of retirement is April 1 or before, you will get the COLA for that year. If your first day of retirement is April 2 or after, you’ll have to wait for next year’s COLA.
Long-Time Retirees and the Supplemental COLA
Many long-time retirees will be eligible for an additional non-vested Supplemental COLA.
What Is the Consumer Price Index (CPI)?
The CPI is a measure of price inflation. Specifically, it is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services such as food, housing, apparel, transportation, medical care, and education. The CPI is measured by the U.S. Bureau of Labor Statistics, which produces CPI figures for the U.S as a whole and for major urban areas such as the San Francisco Bay Area. ACERA bases its COLA on the change in CPI for the Bay Area from December to December.