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Cost of Living Adjustments

A Cost of Living Adjustment (COLA) is provided to SFERS’ retired members to help their post-retirement income keep pace with inflation (the cost of living in the local area).

Retired members may receive up two COLAs from SFERS each year: a Basic COLA and a Supplemental COLA.

Basic COLA

Supplemental COLA

An additional adjustment may be paid along with the Basic COLA, following years when there are sufficient excess investment earnings on the Retirement Fund. This additional adjustment is called the Supplemental COLA.  The Supplemental COLA is not payable to all retirees when the Retirement System is less than fully funded based on the market value of assets.

The COLA Bank cannot be used to fund the Supplemental COLA.

If you retired under a SFERS’ Safety Old Plan, you may receive an automatic adjustment to your monthly retirement benefit on July 1st of each year known as the Basic COLA. For most current Old Plan retirees, the Basic COLA  is determined by selecting the higher of:
1. The average of the maximum rates of compensation paid to safety officers in cities across the State of California with a population of 350,000 or greater (per a survey conducted by the Board of Supervisors based on federal census data); or
2. The rate of salary increase stated in the Memorandum of Operation (MOU)
For safety members who retired before July 1, 1975 (Proposition H members), the Basic COLA is based on 50% of the percentage increase in the salary of the rank or position from which he/she retired.

For safety members who retired on or after July 1, 1975 (Proposition M members), the Basic COLA is based on 50% of the actual dollar increase in the salary of the rank or position from which he/she retired

While the Basic COLA is effective July 1st of each year, it is paid in the October 31st monthly allowance