cost-of-living adjustment

(redirected from Automatic COLA)
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Cost-of-Living Adjustment

An increase to a wage, salary, or pension designed so that the real value remains the same. That is, a cost-of-living adjustment increases the underlying wage, salary, or pension so that it keeps pace with (but does not run ahead of) inflation. Federal pensions and Social Security include cost-of-living adjustments, though few other pensions do.

Cost-of-living adjustment (COLA).

A COLA results in a wage or benefit increase that is designed to help you keep pace with increased living costs that result from inflation.

COLAs are usually pegged to increases in the consumer price index (CPI). Federal government pensions, some state pensions, and Social Security are usually adjusted annually, but only a few private pensions provide COLAs.

cost-of-living adjustment (COLA)

A change in payments, such as rent in subsidized housing, based on a change in the index that measures inflation.

References in periodicals archive ?
The PV proposes treating ad hoc COLAs like automatic COLAs if they are not substantively different.
3 percent since the automatic COLA went into effect in 1975.
However, seniors failed to receive a Cost of Living Adjustment in 2010 for the first time since the Automatic COLA was introduced in 1975.
Automatic COLAs were adopted in 1975 so that benefits for people on fixed incomes would keep pace with rising prices.
Automatic COLAs were adopted so that benefits for people on fixed incomes would keep up with rising prices.

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