PENSION & RETIREMENT

Cost of Living Adjustments (COLA) & Updates

Learn what a Cost of Living Adjustment (COLA) is, why Sonoma County retirees have not received one in years, and what SCARE is doing to advocate for restoring purchasing power.

Contact the Board of Supervisors

Make your voice heard

Rebecca Hermosillo: email@gmail.com

David Rabbitt: email@gmail.com

Chris Coursey: email@gmail.com

James Gore: email@gmail.com

Lynda Hopkins: email@gmail.com

What is a COLA?

A Cost of Living Adjustment (COLA) is an increase to retirement benefits meant to help retirees keep up with inflation.

Without regular COLAs, the value of a pension shrinks over time, even though expenses like housing, food, healthcare, and utilities continue to rise.

Why Haven't Retirees Received a COLA?

There has been no COLA since 2008. This is not because retirees don't deserve one — it is because:

Funding Requirements

COLAs must be funded by the County and require approval from the Board of Supervisors.

High Costs

The cost of restoring purchasing power after many years is now very high.

Reserve Policies

Past reserve policies (including the Negative Contingency Fund) have limited the ability to provide COLAs.

Ongoing Advocacy

SCARE continues to work with SCERA, the County Administrator, and the Board of Supervisors to change this.

What's Happening Now — Recent Progress

Latest Pension Report

Julie Wyne presented a comprehensive pension report to the Board of Supervisors Budget Workshop covering four COLA cost studies and extensive information on Sonoma County pensions.

Membership Meeting & Advocacy Campaign

SCARE met with each Board of Supervisors member and presented to the County CAO with data showing the need for COLAs.

Julie Wyne COLA Update Presentation

SCERA CEO Julie Wyne provided a comprehensive update on current COLA activity and answered member questions about the path forward.

Reserve Policy Changes

The Board approved eliminating the Negative Contingency Reserve and reducing the Interest Fluctuation Reserve from 3% to the 1% required by law.

Negative Contingency Fund Impact Analysis

Julie Wyne reviewed how the Fund has been a major barrier to providing COLAs.

Annual COLA Report to CAO

SCERA's annual report shows retirees who retired before 1998 would need a 50% adjustment to reach 80% purchasing power.

Help Support a COLA

What SCARE Has Done

  • Met with each Board of Supervisors member
  • Presented to the County CAO
  • Provided data showing the need for COLAs
  • Requested revisiting the SCARE settlement agreement

What You Can Do

  • Write to the Board of Supervisors
  • Share information with community groups
  • Attend membership meetings
  • Use SCARE talking points in conversations
  • Respond to newspaper articles

Understanding Pensions: DB vs 401(k)

Why Defined Benefit (DB) pensions matter

Defined Benefit (DB) Pensions

✓  Guaranteed monthly income for life
✓  Risk shared by employer and pension fund
✓  65–70% of benefits come from investment returns
✓  Protect retirees from market swings

401(k) / Defined Contribution Plans

✗  No guaranteed income
✗  Retiree bears all investment risk
✗  Often little or no employer contribution
✗  Can run out in a market downturn

Important: While current pensions cannot be cut, changes to pension funding can affect future COLA possibilities. Defending DB pensions protects both current and future retirees.

Key Facts to Share

0 %

of retirees receive $2,500/month or less

< 0 %

of retirees receive 100k+ annually

~ 0 %

of pension benefits come from investment returns, not taxpayers

0 %

of purchasing power has been lost by those who retired before 1999

These facts help counter misinformation and highlight why COLAs matter.

Need Help or Have Questions?

We're here to support you.

We can help connect you with the right resource or answer general questions.

FAQS

Frequently Asked Questions

Find answers to your questions about COLAs.

Have any questions?

We're here to help you!

A Cost of Living Adjustment helps your pension keep up with inflation so your buying power doesn’t shrink over time.

Because COLAs require County funding and policy changes. The cost of restoring purchasing power after many years is very high and requires Board of Supervisors approval.

The Board of Supervisors must approve funding. SCERA provides analysis, but the County must commit the money.

The Sonoma County Employees’ Retirement Association manages the pension system and provides reports and recommendations on COLAs.

On this page and the Pension & Retirement Info section of the SCARE website.

You can check using the Purchasing Power Calculator, based on your retirement date.