Postemployment Benefit Increases

Postemployment Cost-of-Living Adjustments: Concepts and Recent Trends, by Paul Zorn, Mark Randall, and Joe Newton, Gabriel Roeder Smith & Company, April 2011

• This article discusses the purpose of COLAs, how they are provided, and the advantages and disadvantages of different types of COLAs. It also discusses recent changes in public-sector COLAs and the relative costs of COLA designs.

Overview of variations to typical cost-of-living adjustments among public retirement systems, by Keith Brainard, NASRA, August 2011

• This article gives an overview of the different kinds of COLAs offered by public retirement systems

Addressing Inflation in the Design of Defined Benefit Pension Plans, by Gary Findlay, Executive Director, MOSERS, May 16, 2011

Postemployment Cost-of-Living Adjustments: Concepts and Recent Trends, Gabriel, Roeder, Smith & Co., April 2011

• The sharp investment decline that occurred in 2008-2009 and the resulting financial pressures on state and local governments have led government officials to search for ways of controlling pension costs and stabilizing required contributions. As a result, many pension plans and plan sponsors are reviewing their plan designs, including reviewing the costs associated with postemployment cost-of-living adjustments (COLAs). This article discusses the purpose of COLAs, how they are provided, and the advantages and disadvantages of different types of COLAs. It also discusses recent changes in public-sector COLAs and the relative costs of COLA designs.