At the April 2nd meeting of the LAFPP Board of Commissioners meeting, the COLA for 2026 was approved at 2.9%. The COLA increase will be effective July 1, 2026.
Tiers 1 & 2 have an uncapped COLA. Tiers 3, 4, 5, & 6 and all DROP participants are capped at 3.0%. Tiers 5 & 6 have a COLA bank feature. The COLA bank is credited when the percentage increase exceeds 3.0%, and the excess is added to the pensioner’s /DROP member’s COLA bank balance. There is currently a 7.0% balance in the COLA banks of Tiers 5 & 6 members /beneficiaries.