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 ?
5 million federal retirees depend on annual cost-of-living adjustments to help their modest pensions keep pace with inflation, while federal retirees under the newer Federal Employees Retirement System also count on the COLA increase for their Social Security checks.
We only give cost-of-living adjustments or incentive pay if the money's available and the City Council approves it, because sometimes the money is not available," Townsell said.
For the first time in more than 30 years, seniors and disabled workers on Social Security will not receive a cost-of-living adjustment next year.
In response, the disability insurance industry scaled back benefits for new physician policyholders by limiting the maximums to more reasonable levels, eliminating the own specialty definitions, returning replacement ratios to more appropriate levels and eliminating cost-of-living adjustments.
Key changes included the introduction of dependents benefits in 1958, the elimination of the age 50 requirement in 1960 and the initiation of cost-of-living adjustments and the provision of Medicare coverage for disability beneficiaries in 1972.
Among the chosen benefit reductions are increasing the retirement age and reducing future cost-of-living adjustments.
For instance, they propose revising the calculation for cost-of-living adjustments to 0.
In January, the decline in wages and salaries was partially offset by a large increase in transfer payments, due to cost-of-living adjustments to social security benefits, Federal civilian and military pay raises, and other factors.
According to the parties, the agreement guarantees that workers will receive adjustments of around 4 percent annually in some combination of wage increases, lump-sum payments, and cost-of-living adjustments (COLA'S).
population 32,700) has eliminated automatic cost-of-living adjustments and implemented a Pay for Performance program.
The story begins in 1986, when Republicans lost control of the Senate after the Reagan administration attempted to reduce cost-of-living adjustments on Social Security benefits.
Most likely, measurement issues are not much more difficult in this regard than in the construction of cost-of-living adjustments for wages and benefits, and the not seasonally adjusted consumer price index will probably fit the bill.