cost-of-living adjustment

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Related to Cost Of Living Adjustment: inflation rate, Cost of living index

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 ?
4 percent after excluding retroactive payments and 2012 cost of living adjustments.
99-514) suggests that a stream of payments under a defined contribution or defined benefit plan will not fail to be substantially equal solely because the payments vary on account of certain cost of living adjustments.
The IRS has unveiled cost of living adjustments applicable to dollar limitations for pension plans and other items, for tax year 2006.
The IRS has released cost of living adjustments for pension plans and other items for tax year 2005.
Massachusetts voters previously eliminated rent control throughout the state in a 1994 referendum, but resident advocates had placed a proposal on the November ballot that, if passed (and if it had been approved by the state legislature), would have frozen Cambridge rents at September 2002 levels before lowering them to the February 1999 level with inflation and cost of living adjustments.
An expert commission on the seemingly arcane matter of cost of living adjustments issued a report late last year concluding that government statistics exaggerate increases in overall consumer prices.