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 ?
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.
The Santows see the need for new approaches in several areas, among them universal preschool education funded by estate taxes; automatic cost-of-living adjustments to the minimum wage; new tax computation approaches; and inducements for the private sector to provide health-care coverage.
IRC section 415 requires the IRS to make annual cost-of-living adjustments to dollar limitations on qualified retirement plan benefits and contributions.
Pay has gone up, with more 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.