cost-of-living adjustment

(redirected from Automatic Cost of Living Adjustment)
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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 ?
During an extensive community budget process, our citizens affirmed that Pay for Performance, not automatic cost of living adjustments, was the appropriate way to compensate high achieving employees.
Since automatic Cost of Living Adjustments went into effect in 1975, seniors have never before failed to get an increase.
3 percent since automatic Cost of Living Adjustments (COLA) went into effect in 1975, and have never received less than 5.

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