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Calculating the COLA

Apr 19, 2022, 08:51 AM by MOSERS
With the CPI nearing 5% and expected to rise above it I'm wondering how what the 5% maximum on the COLA is. Is the maximum COLA 5% or is the maximum COLA calculated as 80% of a maximum 5% CPI (5% x .80 = 4%)?
COLA Calculation

The maximum cost-of-living adjustment (COLA) for MOSERS retirees and beneficiaries is 5%. If the percentage change in the CPI from one year to the next were 5%, the COLA would be 4% (80% of 5%). If the percentage change in the CPI from one year to the next were 6.2%, the COLA would be 4.96% (80% of 6.2%). If the percentage change in the CPI from one year to the next were 10%, the COLA would be 5% (80% of 10% is 8% but the maximum COLA is 5%).

The COLA that our retirees or their beneficiaries will receive this year is 3.758%. 

To learn more, see our Cost-of-Living Adjustments page. 
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