b'PENSION BENEFIT PROVISIONS, CONT.TIER 1 TIER 2 TIERS 3 AND 4 TIER 5 TIER 68. Cost of Living Adjustments (COLA)a. GenerallyFull annual COLA increase or decreaseAnnual COLAAnnual COLA increase or decrease not ApplicableCOLAs compound and are based uponincrease orto exceed 3% Provisionsthe Consumer Price Index for localdecrease up to 3%Amounts above 3% are banked to urban ConsumersCOLAs compoundbe credited during years when the Survivors pension includes theand are basedConsumer Price Index is below 3%percentage of COLAs applied to theupon theCOLAs compound and are based upon members pension prior to death Consumer Pricethe Consumer Price Index for local Index for localurban consumers urban consumers Pro rataPro rata adjustment in the first year of adjustment inretirement the first year ofCity Council may grant discretionary retirementCOLA increases once every three years - City Councilmembers COLA Bank is reduced may grantSurvivors pension includes the discretionarypercentage of COLAs applied to the COLA increasesmembers pension prior to deathonce every three years Survivors pension includes the percentage of COLAs applied to the members pension prior to deathb. Effective Date ofAnnualAnnualAnnual adjustments commence on the July 1 following the COLA:adjustmentsadjustmentseffective datei. Service commence on thecommence on the Retirement July 1 followingJuly 1 following the later of thethe later of the effective dateeffective date or the date theor the date the member wouldmember would have been age 55 have completed 25 years of service ii. Service-Annual adjustments commence on the July 1 following the effective dateConnected Disability, Service- Connected Deathiii. Nonservice-Annual adjust- Annual adjust- Annual adjustments commence on the July 1 following the Connectedments commencements commenceeffective dateDisability,on the July 1on the July 1 Death Afterfollowing thefollowing the Nonservice-date the memberdate the member Connectedwould have beenwould have com-Disabilityage 55 or 5 yearspleted 25 years of after the effectiveservice or 5 years date of the pen- after the effective sion, if earlier date of the mem-bers pension, if earlier156 LAFPP ANNUAL REPORT 2024'