Cost of Living Adjustment (COLA) Definitions:

In the fall of 2007, all vested employees (those with 5 or more years of service as of December 31, 2007) and all retirees were given the opportunity to choose which type of Cost of Living Adjustment (COLA) - Guaranteed or Ad-Hoc - they wanted to receive upon retirement from the City of Fort Worth. (See definitions below) Employees who were not vested and all employees hired thereafter will receive the Ad-Hoc COLA upon retirement. 

Guaranteed COLA – The annual 2% fixed increase awarded January 1st to a retiree’s pension check. The 2% increase is calculated using the original base pension. This is a fixed amount and will not change. This COLA is guaranteed to be awarded each year.

Ad-Hoc COLA – The annual increase awarded January 1st to a retiree’s pension check, and may vary each year from  0% to 4%. The COLA amount is determined by the funding status of the retirement plan and will be compounded. The plan’s actuary will present a report to the Board of Trustees certifying the funding status of the plan, by no later than December 31st.   The actuary generally presents the actuarial report in April, and in that report certifies the COLA that is to be paid beginning the following January 1.

Ad-Hoc COLA Awarded:

• January 1, 2008 = 2%
• January 1, 2009 = 4%
• January 1, 2010 = 0%
• January 1, 2011 = 0%