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cost-of-living adjustment

   Also found in: Dictionary/thesaurus, Encyclopedia, Wikipedia, Hutchinson 0.29 sec.
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.



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The legislation will provide a one-time, $250 payment - or roughly a 2 percent cost-of-living adjustment - to Social Security beneficiaries next year.
He produced no evidence of the proper cost-of-living adjustment for the time period, how he calculated the distributed amount or why the alleged adjustment was made in a lump-sum payment, rather than allocated over each of the years.
Moreover, the price increases that retirees routinely face are frequently higher than the Social Security cost-of-living adjustment, because older families spend more on health care and energy than the overall U.
 
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