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 ?
With the CPI no longer reflecting the true cost of living increase, the middle class can no longer keep up with their expenses.
ATL said that while this does mark an improvement - in the past three years, pay has been frozen for around two in five teachers - only 1% of respondents received a cost of living increase that matched or bettered the Retail Price Index of 3.
4% cost of living increase in December 2010, compared to December 2009, saying this increase is skyrocketing.
Dupre said the cost of living increases would not be funded by taxpayers, but achieved by the teachers as they agreed to take a half-year pay freeze to fund the increases.
But increases in council tax levels in Redcar and Cleveland would be kept within the cost of living increase - 51p a week for Band A properties, which make up one third of homes.
At the UO, union employees agreed to no cost of living increase for two years and no step increase for one year as well as varying numbers of unpaid furlough days based on salary, resulting in a pay cut of about 3.
In fiscal 2008, he seeks a $2,457 longevity payment and $2,457 cost of living increase to make his salary $127,775; in fiscal 2009, he seeks a $2,555 longevity payment and $2,555 cost of living increase to make his salary $132,886.
It's been clear over the last decade that there is a regular cost of living increase between 4.
The arbitrator awarded a cost of living increase of 3 percent the first year of the contract and of 2 percent each of the following two years.
Green, however, argued that the cost of living increase was far less than the 5.
Additional available riders include a Restoration of Benefits rider, a Nonforfeiture Benefits rider, a Cost of Living Increase rider and Automatic Increase Benefits for inflation protection.
City Hall has set a standard of 6 percent raises for city employees - four times the cost of living increase Social Security recipients are getting - and made promises to all the special interests that have contributed so handsomely to fight secession.