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COST OF LIVING ADJUSTMENT (COLA)

2021 COLA 1.35% Effective January 1, 2021

A COLA is an annual adjustment added to the base pension of every eligible retiree and beneficiary. The COLA goes into effect on January 1 each year. Your base pension is defined as the pension you received at the time of your retirement.

To receive the full COLA amount, you must have been retired for more than eleven months. If you retired less than one year before the effective date, your COLA will be prorated.

Each year prior to January 1st, ERF will calculate your COLA and then adjust your pension to determine your new pension amount for the year. The Health Benefit Supplement (for Tier A members) is not included in your base pension and therefore is not subject to a COLA.

CALCULATING THE COLA

Each year the COLA is calculated two ways; the greater of which is added to your base pension. The COLA is based on the greater of either:

The percentage of change in the price index for October of the current year over October of the previous year up to 5% for Tier A members or 3% for Tier B members.
or
The percentage of the annual average change in the price index for the latest 12 months available, up to 5% for Tier A members or 3% for Tier B members.

 

EXAMPLE 2019 COLA CALCULATION

The example below shows the COLA calculation for 2019 at an increase of 2.689%.

The formula for calculating the COLA is:
$2,968 (Base Pension) x 2.689% (2019 COLA) = $79.81
$79.81 + $3,529.93 (Current Pension) = $3,609.74
$3,609.74 + $125 (Health Supplement) = $3,734.74 (New Monthly Benefit)
 

 

Health Benefit Supplement

HEALTH BENEFIT SUPPLEMENT

To help manage the costs of healthcare after you retire or to help your beneficiaries after your death, ERF provides a health benefit supplement to all Tier A members. You will receive $25 per month for each full year of service credit, up to $125 per month.

TAX DOCUMENTS

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Tax Documents
Retiree Forms

RETIREE FORMS

Most ERF forms are available online. To submit a form, locate the form you need and click on the form title. Your form will open in a new window. The required fields will be highlighted for you to type in directly.

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TRANSITIONING TO MEDICARE

If you or your spouse are currently enrolled in a City of Dallas health insurance plan and are within three months of your 65th birthday, you are eligible to sign up for Medicare and enroll in one of the City’s sponsored Medicare supplement plans. You can apply for Medicare online or any local Social Security office. 

For additional information or to find an office near you, visit www.ssa.gov or call  800-772-1213. For information about Medicare Meetings, contact the City of Dallas Benefits department at 214-671-6947, Option 1.

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