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 ?
Unfair because Cost of Living Adjustments insulate certain groups (those who get them) from the effects of inflation, while leaving others (those who don't) to bear its brunt.
And it should consider reducing cost of living adjustments and/or implementing a gradual phase-in of lower replacement ratios.
economic growth * Unfunded liability for Medicare drug benefit exceeds Social Security shortfall * Higher retirement age, lower cost of living adjustments among solutions
Social Security cost of living adjustments in the 1990s have been rising at the slowest pace since Congress made the increases automatic 23 years ago.
The settlement increases pay by about 9 percent over the contract term, including cost of living adjustments, and provides pension band increases of 2 percent in each year of the agreement, also with cost of living adjustments.
Economically, the nurses will average a 5-percent increase the first year, with cost of living adjustments in the second and third years.
The county already has enacted $178 million in budget balancing measures, including an early separation program, suspension of cost of living adjustments, continuation of a hiring freeze, and use of various special funds.
The expected drawdown is attributed to a recent change in the state education funding formula on cost of living adjustments that have negatively affected the district, rising health insurance costs, and future salary increases.
However, the current budget does not fund cost of living adjustments and labor agreements remain unsettled.
Goebel is asking the court to order future cost of living adjustments according to the pension plan.
Also, the state, subsequent to the city's budget adoption, legislated pension cost of living adjustments (COLAs) which gradually increase annual city costs to a level that will exceed $500 million by the fifth year.