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 ?
government has a measure for seniors' living costs, but does not use it when giving Social Security recipients an annual cost-of-living adjustment (COLA).
These amendments included increasing the yearly TVA contribution to $300 million, changing current employees meeting specific tenure requirements to a 401(k) plan and continuing to provide a cost-of-living adjustment benefit for retirees.
Now, those covered by the Employees Retirement System of Texas pension funds are asking lawmakers for a cost-of-living adjustment, calling it long overdue.
"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.
The act increased the statutory maximum credit and exclusion amount from $10,000 to $13,170 and, starting in 2011, changed from 2001 to 2009 the base period for annual cost-of-living adjustments of the credit and exclusion amounts and their phaseout threshold.
The current formula used to calculate cost-of-living adjustments for Social Security beneficiaries does not take into account the purchasing habits of seniors.
The budget, which contains no cost-of-living adjustments for employees, calls for major cuts in police, fire, library, DPW, ambulance and recreation budgets.
As you know, cost-of-living adjustments are a cruel joke.
The offer includes a wage increase of 11% over three years, cost-of-living adjustments, and increases in pension contributions.
Benefits included short elimination periods, high replacement ratios, high maximums, extended own-occupation and specialty definitions, cost-of-living adjustments and so on.
IR-2005-120 announced cost-of-living adjustments (COLAs) for (1) dollar limits on benefits under qualified retirement plans and (2) other provisions affecting such plans that take effect on Jan.
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.