Announcementof the 2014 Cost-of-Living Adjustment
The TVARS board approved a 1.53 percent cost-of-living adjustment (COLA) for eligible retirees for calendar year 2014. Retirees will see the increase in checks beginning January 31, 2014. The COLA is calculated by comparing the percentage change from one 12-month period to another 12-month period of the U.S. Labor Department’s Consumer Price Index-All Urban Consumers- or the CPI-U (the CPI-U takes into account priceincreases/decreases for various good and services).
Previous COLA Adjustment Information
As previously communicated, the TVA Retirement System Board approved amendments to the cost-of-living adjustment (COLA) for the years 2010 to 2013. Based on this temporary change, the COLA will be calculated as follows:
For calendar year 2010, the COLA will be 0%.
For calendar year 2011, the COLA will be the increase in the CPI, capped at 3%
For calendar year 2012, the COLA will be 0%.
For calendar year 2013, the COLA will be the increase in the CPI, capped at 2.5%
At the end of this four-year period, the COLA benefit will be restored to increase in CPI capped at 5%.