The LANS Defined Benefit Pension Plan (TCP1) Cost of Living Increase (COLA) effective July 1, 2008 is 2% (Based on a 2.4% CPI (Consumer Price Index) increase in San Francisco/Northern California, as determined in accordance with the Plan Document as outlined below.
The COLA is calculated as:
(1)100% of the first 2% CPI increase, plus
(2) 75% of any portion of the CPI increase that is higher than 4% (up to maximum of 4%)
In general, the maximum possible annual COLA increase is 6% based on this formula. For this year, only the first 2% of the overall 2.4% CPI increase is counted.
