Governor Chris Christie • Lt.Governor Kim Guadagno  
The Official Web Site For The State of New Jersey - Department of Treasury
Global Navigation
FAQs Departments/ Agencies Services A to Z NJ Home Page
Disclaimer
Twitter YouTube Facebook
Pensions and Benefits
COST-OF-LIVING ADJUSTMENT (COLA) CHART

SUSPENSION OF COST-OF-LIVING ADJUSTMENTS

Chapter 78, P.L. 2011, the Pension and Health Benefit Reform Law, suspended future Cost-of-Living Adjustments (COLA) for all retirees of all retirement systems. This suspension is effective for benefits payments made as of August 1, 2011.

It is important to note that the law does not reduce any COLA increases made to retiree benefits prior to the effective date of the law. The amount of money a retiree or benefit recipient currently receives each month will not be reduced by this law.

Chapter 78 also provides for the establishment of Pension Committees which may consider reinstating the COLA when the retirement systems reach “target funded ratios” established by the law. At that time, the Pension Committees are to give the reactivation of the COLA priority consideration.


COST-OF-LIVING ADJUSTMENTS PRIOR TO SUSPENSION

Prior to the suspension of COLA increases under Chapter 78, the COLA calculation was determined using the factors listed below.

The percentage shown for the year of retirement is applied to the "regular allowance" to determine a retiree's COLA.

  • To find the regular allowance, see the "Current Earnings" section of the Statement of Allowances and Deductions which accompanies monthly pension checks.

  • For benefits received by Direct Deposit, or if you do not have the Statement of Allowances and Deductions, call (609) 292-7524 and follow the prompts for "Retirement Information" to hear the allowances and deductions over the phone.

For additional information on the calculation of your COLA,
see Fact Sheet #18, Cost-of-Living Adjustments Adobe PDF (24K)

COST-OF-LIVING ADJUSTMENT FACTORS
FOR 2011 (AS ADJUSTED) AND FOR 2012
  2011 as Adjusted
60.00%
2012 (2011 Rates
without Offset)
60.00%
 
RETIREMENT
 YEAR
1982-84=100
AVERAGE CPI
212.52
212.94
RETIREMENT
 YEAR
1954 or Prior 32.6 331.141% 331.914% 1954 or Prior
1955 26.9 414.022% 414.959% 1955
1956 27.3 407.077% 408.000% 1956
1957 28.3 390.572% 391.463% 1957
1958 29.1 378.186% 379.052% 1958
1959 29.3 375.195% 376.055% 1959
1960 29.8 367.893% 368.738% 1960
1961 30.1 363.628% 364.465% 1961
1962 30.4 359.447% 360.276% 1962
1963 30.8 354.000% 354.818% 1963
1964 31.2 348.692% 349.500% 1964
1965 31.7 342.246% 343.041% 1965
1966 32.6 331.141% 331.914% 1966
1967 33.6 319.500% 320.250% 1967
1968 35.0 304.320% 305.040% 1968
1969 36.9 285.561% 286.244% 1969
1970 39.0 266.954% 267.600% 1970
1971 40.7 253.297% 253.916% 1971
1972 42.1 242.879% 243.477% 1972
1973 44.7 225.262% 225.825% 1973
1974 49.6 197.081% 197.589% 1974
1975 54.1 175.697% 176.163% 1975
1976 57.2 162.923% 163.364% 1976
1977 60.9 149.379% 149.793% 1977
1978 65.6 134.378% 134.762% 1978
1979 73.1 114.435% 114.780% 1979
1980 82.9 93.814% 94.118% 1980
1981 91.4 79.510% 79.786% 1981
1982 96.9 71.591% 71.851% 1982
1983 99.8 67.767% 68.020% 1983
1984 103.3 63.438% 63.682% 1984
1985 106.9 59.282% 59.517% 1985
1986 108.6 57.414% 57.646% 1986
1987 112.5 53.344% 53.568% 1987
1988 117.0 48.985% 49.200% 1988
1989 122.6 44.007% 44.212% 1989
1990 129.0 38.846% 39.042% 1990
1991 134.3 34.946% 35.133% 1991
1992 138.2 32.266% 32.449% 1992
1993 142.1 29.734% 29.911% 1993
1994 145.6 27.577% 27.750% 1994
1995 149.8 25.121% 25.290% 1995
1996 154.1 22.746% 22.910% 1996
1997 157.6 20.909% 21.069% 1997
1998 159.7 19.845% 20.003% 1998
1999 163.2 18.132% 18.287% 1999
2000 168.9 15.496% 15.645% 2000
2001 173.5 13.494% 13.639% 2001
2002 175.9 12.491% 12.634% 2002
2003 179.8 10.919% 11.059% 2003
2004 184.5 9.112% 9.249% 2004
2005 191.0 6.760% 6.892% 2005
2006 197.1 4.694% 4.822% 2006
2007 202.77 2.885% 3.009% 2007
20081 211.05 0.537% 0.537% 20081
Through 6/1/20091 209.63 0.947% 0.947% Through 6/1/20091
7/1/2009 and after2 N/A N/A 0.000 7/1/2009 and after2

1 For COLA recipients who retired in 2008 and 2009 there was no offset since no COLA was paid to these retirees in 2010. For 2011 the CPI used for the 12 months ending August 31, 2010 was 212.94.

2 Under a provision of Chapter 78, P.L. 2011, future Cost-of-Living Adjustments (COLA) are suspended for retirees and benefit recipients of all retirement systems. Please be assured, there is no reduction to any COLA increases that were already added to retiree benefits prior to the effective date of the law.

Return to top of chart     Go to Fact Sheet #18 Adobe PDF (24K)
 
spacer

Pensions and Benefits: Home | Employer Manual | Health Benefits | Forms and Publications | Counseling Appointments
Treasury: Home | ServicesPeopleBusinesses | Divisions/AgenciesFormsContact Us
Statewide:
NJ Home | Services A to Z | Departments/Agencies | FAQs
Copyright © State of New Jersey, 1996 -
This site is maintained by the Division of Pensions and Benefits.
 

Reports Accessibility Statement Legal Statement Privacy Notice Contact Us Open Public Records Act Proposed Rules and Amendments Comment or Petition for new Rule Division/Ageny Statutes and Rules Electronic Notification Twitter YouTube Facebook