• Steve 


    San Francisco, CA

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  • COLA is an acronym that stands for "Cost of Living Adjustment". This is an adjustment to salaries or benefits based on a cost of living index, the most popular of which is the Consumer Price Index (CPI). In the case of retirement benefits, such as a pension, your previous employer will make adjustments to your benefit based on the cost of living adjustment determined by the cost of living index that they use.

  • Login to rate this answer:   Answered on 7/24/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.