Cost-of-Living Adjustments

The Oregon Supreme Court determined that changes to the cost-of-living adjustment (COLA) from 2013 legislation were unconstitutional as applied to benefits earned before the legislation was effective. However, the changes to the annual COLA could be applied to the benefits earned after the legislation was passed.

Administratively, there are two relevant time periods for COLA:

• Service time before October 1, 2013: 2.0 percent maximum COLA for service time before this date; the 2.0 percent annual cap is tied to the Portland Consumer Price Index (CPI).
• Service time on or after October 1, 2013: two-tiered COLA; 1.25 percent on the first $60,000 of an annual benefit and 0.15 percent on annual benefit over $60,000.

The Court also voided the supplementary payment program from 2013 legislation.