Reporting Services (ERS)
2009 COLA Information
SBCERA COST-OF-LIVING ADJUSTMENT (COLA) FOR April 1, 2009
On June 6, 1983, the San Bernardino County Board of Supervisors adopted Government Code section 31874 and implemented an annual cost-of-living adjustment (COLA) for most benefits. COLAs may not exceed 2% per year in accordance with Government Code section 31870. COLAS are effective April 1st of each year and are included in monthly benefit payments thereafter.
COLAs are based upon the increase or decrease in the regional cost-of-living index. Prior to April 1st of each year, the Board of Retirement must refer to the December 31st, Bureau of Labor Statistics Consumer Price Index (CPI) for All Urban Consumers for the region in which the county seat is situated in order to determine whether there has been an increase or decrease in the cost-of-living. Government Code section 31870 requires the CPI increase or decrease be rounded to the nearest one-half percent.
Also, in accordance with Government Code section 31870, the cost-of-living increase or decrease in any year which is not met by the maximum annual change of 2% in allowances is accumulated or “banked” for future years.
The change in the regional cost-of-living index on December 31, 2008 was .11%. This increase in the cost-of-living index of .11% is rounded to the nearest one-half percent, which is zero. SBCERA retired members are affected in the following manner:
For members who retired on or before April 1, 2008, you will receive a 2% COLA because your accumulated or cost-of-living amount from previous years was equal to or exceeded 2%. Your cost-of-living accumulated account or balance has been reduced by 2%.
For members who retired on or after April 2, 2008, but on or before April 1, 2009, you will not receive a COLA beginning April 1, 2009, and your cost-of-living accumulated account or balance remains zero.
For members who retire after April 1, 2009, you will not receive a cost-of-living adjustment beginning April 1, 2009, and you are not eligible for a cost-of-living adjustment until April 1, 2010.
For more information regarding cost-of-living adjustments, please refer to the Frequently Asked Questions (FAQ’S) Regarding Cost-of-Living Adjustments.
