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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
(population 32,700) has eliminated automatic cost-of-living adjustments and implemented a Pay for Performance program.
Under this program, automatic cost-of-living adjustments were eliminated and employees became eligible to receive one-time, lump sum Performance Pay of up to 7.5 percent of their annual salary.
(The $17.01 expected rate includes a union estimate of future automatic cost-of-living adjustments under a new formula matching that at Chrysler and the other companies, but does not include the money workers could receive under a provision guaranteeing them the same wage increases and lump-sum payments that Chrysler workers might receive in 1990 and 1991.)
Seventeen states have reduced their automatic cost-of-living adjustments (COLAS) in the past two years.
Retirees have received automatic cost-of-living adjustments every year since - until now.
Provisions for automatic cost-of-living adjustments (COLA), triggered primarily by specified changes in the BLS Consumer Price Index, applied to less than 5 percent of the work force.
The 4-year contract does not provide for specified wage increases or automatic cost-of-living adjustments in the first year.

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