GRS Annual Cost of Living Adjustment (COLA) for Benefits in Payment Status

  • How the GRS COLA is calculated


    The GRS Plan Document, as amended and restated effective January 1, 2013, prescribes the following method for calculating annual adjustments to retirement and disability benefits in payment status:



    Benefits in pay status as of each July 1 shall be subject to adjustment, based on the Cost of Living Index, determined as follows:

         (a) The Committee shall determine a current average Cost of Living Index calculated by averaging the 12 preceding monthly Consumer Price Indices for All Urban Consumers (the "Consumer Price Index") for the previous calendar year, as published by the Bureau of Labor Statistics of the Department of Labor. The Committee's determination shall be made by March 1 or as soon thereafter as administratively feasible. If the monthly Consumer Price Index is revised by the Bureau of Labor Statistics, the Committee shall make adjustments to the Cost of Living Index to reflect such revision.

         (b) The amount of the Post Retirement Benefit Adjustment that is to be added to benefits shall be equal to a positive percentage of such benefits, with such percentage being equal to the percentage by which the current Cost of Living Index is increased from the index calculated on the preceding March 1.

         (c) The percentage shall be calculated by:

              (1) dividing the current Cost of Living Index by the prior Cost of Living Index and multiplying the quotient by 100.

              (2) The percentage shall be equal to the product calculated in subsection (1) above, minus 100 subject to the following adjustments:

                        (i) Percentages less than 0% shall be ignored and no adjustments shall be made.

                        (ii) In no event shall positive percentages exceed 3%.

         (d) Benefits shall be adjusted for the twelve-month period beginning on July 1 next following the determination of the Cost of Living Index. Benefits which have been in pay status for less than twelve (12) months will be adjusted on a pro-rata basis. The net amount of Disability Income Benefits determined after all offsets have been taken into account as provided under Section 8.08 (Offset of Disability Income Benefits) shall be adjusted as provided for in this section. Subsequent adjustments under this subsection shall be applied to such adjusted net amounts, without consideration of any changes to the initial offsets.