COLAs: Frequently Asked QuestionsLASERS Retiree WorkshopJuly 25, 2018

COLAS: Frequently Asked Questions | LASERS Retiree Workshop 2

Several criteria must be met before a COLA can be granted:

1. The Experience Account, which receives excess investment returns, must have a balance sufficient to fund the COLA on an actuarial basis. The LASERS Board of Trustees may recommend a COLA to the legislative leadership when funds are available. Legislation to grant a COLA must receive at least a two-thirds vote of both the Louisiana House of Representatives and Louisiana State Senate. The legislation is subject to gubernatorial veto. (R.S. 11:542)

2. To be eligible, regular retirees must be retired at least one year on the date the COLA is granted and must be at least age 60. These requirements were set by the Legislature in 2009. For survivors, the age 60 requirement is based on the age the retiree would have attained by the date the COLA is granted. There is no age requirement for disability retirees.

What must happen in order for a COLA to be granted to LASERS Retirees?

COLAS: Frequently Asked Questions | LASERS Retiree Workshop 3

• A 1.5% COLA was granted July 1, 2016 to eligible retirees.

When did LASERS retirees last receive a COLA?

COLAS: Frequently Asked Questions | LASERS Retiree Workshop 4

Based on Act 399 of 2014, a COLA is subject to the following restrictions:

How is the amount of a COLA calculated?

1ARR is the Assumed Rate of Return for the System, currently 7.75 percent for the 12 month period ending June 30 of the previous year.2CPI-U is the Consumer Price Index – Urban.

Legislation can change this process.

COLAS: Frequently Asked Questions | LASERS Retiree Workshop 5

Go to: www.lasersonline.org/resources/faq/retired-member-faq

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