What is a COLA and how is it calculated?
A COLA is a cost-of-living adjustment that allows retirement benefits to maintain purchasing power by growing with inflation. PERS 1 and TRS 1 have a fixed dollar amount per month, per year of service ($1.88 in 2010). See the Plan 1 COLA increases. LEOFF Plan 1 members receive a COLA that matches the Consumer Price Index (CPI). The other plans have a percentage increase, which is the lower of the CPI or 3 percent.