FROM: Amy McInerny, Chief Financial Officer
SUBJECT: Retiree COLA - Effective April 1, 2026
RECOMMENDATION:
title
Approve an annual retiree cost-of-living adjustment of 2% effective April 1, 2026.
body
BACKGROUND:
Government Code (GC) section 31870 requires the cost-of-living adjustment (COLA) be calculated by rounding the percentage of annual increase or decrease in cost of living as of January 1st each year, as shown by the Bureau of Labor Statistics Consumer Price Index of All Urban Consumers (CPI) for the Riverside-San Bernardino-Ontario area, rounded to the nearest one-half percent. A COLA is provided at a maximum of 2% per year.
SBCERA has determined the COLA, in accordance with GC section 31870, to be 2.0% as of January 1, 2026.
The COLA is calculated by comparing the area’s past two November CPI indexes. The Riverside-San Bernardino-Ontario area index is measured at each odd month. The ratio of these values, 138.851 in 2025 and 132.853 in 2024, is 4.5:
November 2025 = 138.851 = 1.045
November 2024 132.853
GC section 31870 indicates that the resulting percentage change of 4.5% should be rounded to the nearest one-half percent, which is 4.5%.
SBCERA members and eligible beneficiaries who have a benefit effective date on or before April 1, 2026 will receive a total award of 2% and their banks will be increased by 2.5%.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Prudent Fiscal Management
STAFF CONTACT:
Amy McInerny
ATTACHMENTS:
Exhibit A: Frequently Asked Questions: COLA Adjustment