Key Factors Impacting a COLA Base Increase
Earlier in this Voice (page 1) we reported on the 2024 Investment Report by PERAC (Public Employee Retirement Administration Commission). The Table below provides details from the Report, as well as other key factors not in the Report (for example, Assumed Rate of Return and COLA Base) that impact a decision by retirement systems to increase their COLA Base, Please note that the column, entitled 40-Year Rate of Return, shows the rate of return for a period that refers back to the 1983 enactment of Chapter 661, the landmark omnibus pension funding and investing reform law that included the creation of “6A Pension Reserve Funds”.
We have also updated the Funded Ratio and Date of Valuation for a system where appropriate.
