Updated October 30, 2026. Quick answer: Los Angeles Fire and Police Pensions (LAFPP) adjusts pensions each July 1 by the change in the Los Angeles-Long Beach-Anaheim CPI for March through February. Tiers 3 through 6 have a 3% cap, and Tiers 5 and 6 also have a COLA bank for increases above it. The Board approved 2.9% for 2026 on April 2, 2026. The 2027 COLA depends on CPI through February 2027 and has not been approved.
How the COLA is measured
LAFPP’s COLA page explains: “Specifically, we look at the change in the CPI for the Los Angeles-Long Beach-Anaheim area for the 12-month period beginning in March through February of the following year.” Timing: “The COLA takes effect on July 1 of every year”.
The tier caps and the Tier 5 and 6 bank
The page says: “Tiers 3 and 4 have a 3% COLA cap and cannot incur an increase/decrease beyond the cap.” “Tiers 5 and 6 have a 3% COLA cap and cannot incur an increase/decrease beyond the cap.” On the bank: “they also have a COLA Bank to store any increases in the CPI greater than 3%, which can be applied in future years when the CPI is below 3%”. The floor: “the pension amount will not be reduced to less than the member’s or qualified survivor’s original pension amount”.
The discretionary COLA
The Tier 6 Summary Plan Description adds: “Once every three years, the City Council may grant a Discretionary COLA. The Discretionary COLA cannot exceed one-half of the difference between the CPI and the actual increase granted during the preceding three years.”
The 2026 COLA
LAFPP states: “The Cost of Living Adjustment (COLA) is 2.9% for 2026 and was approved by the Board of Fire and Police Pension Commissioners on April 2, 2026.” The June 2026 newsletter confirms the method: “the 2026 COLA was calculated based on the Los Angeles-Long Beach-Anaheim area using a 12-month period from March 2025 through February 2026.”
Recent years
LAFPP’s historical chart lists 3.10% for Tiers 1 and 2 and 3.00% for Tiers 3 to 6 in 2025, and 3.40% for Tiers 1 and 2 and 3.00% for Tiers 3 to 6 in 2024.
What the documents do not say
The Charter and Administrative Code sections were not archived. The June 2026 newsletter example applies 3.0% to Tiers 5 and 6 using the COLA bank, while the historical chart prints 2.90%; the two documents are not reconciled here. The Summary Plan Description dates are inferred from file names.
Where 2027 stands
No 2027 LAFPP COLA is set: it is computed from the CPI for March 2026 through February 2027 and approved by the Board of Fire and Police Pension Commissioners.
Common mistakes
- Assuming the CPI is measured on a calendar year. LAFPP uses March through February.
- Expecting more than 3% in Tiers 3 to 6. The page describes a COLA bank only for Tiers 5 and 6.
- Treating the discretionary COLA as routine. The City Council may grant it only once every three years.
Related: LAFPP retirement decisions, how public pension decisions work, and whether California taxes pensions.
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Answer againSources
- Los Angeles Fire and Police Pensions, Cost of Living Adjustments (COLA): www.lafpp.com
- Los Angeles Fire and Police Pensions, Fire and Police Pension Plan Tier 6 Summary Plan Description: content.lafpp.lacity.gov
- Los Angeles Fire and Police Pensions, Pension Perspectives, June 2026, page 3 (2026 COLA): lafpp.lacity.gov
- Los Angeles Fire and Police Pensions, Historical Cost Of Living Adjustments: content.lafpp.lacity.gov
- Related official page (not quoted): IRS Tax Topic 410, Pensions and annuities: www.irs.gov
- Related official page (not quoted): IRS Tax Topic 411, Pensions: the General Rule and the Simplified Method: www.irs.gov
Read from the primary documents linked above on October 30, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the IRS itself is the right place to confirm anything consequential.