Am I automatically entitled to an annual cost-of-living increase in my retirement allowance?

Cost-of-Living Adjustments (COLAs) are not automatic.

• Procedure for Granting a COLA
  •   The decision to grant a COLA is made by the state legislature and Governor for retirees from the State and Teachers’ Retirement Systems.
  
  •   Recent legislation requires acceptance by the local retirement board and the appropriate legislative body before retirees from local retirement systems would be eligible for COLAs.
  
  •   Once the legislation has been accepted, a retirement system can vote to grant an increase for a given year.
  
  •   Every member and beneficiary in that system who was receiving an allowance as of June 30 of the prior fiscal year would then be entitled to a COLA.
  
  
• COLA Amount
  •   The percentage increase in an allowance will be made on the full amount of an allowance up to a base of $12,000.
  
  •   The cost of living percentage is based on the cost of living increase granted under the Consumer Price Index, not to exceed 3.0%.
  
  •   In addition to this COLA, an additional COLA (up to a total COLA of 3% of $12,000) may be granted pursuant to another local option section.