Updated October 30, 2026. Quick answer: The Imperial County Employees’ Retirement System (ICERS) sets its COLA each April 1 from the West Region CPI for the two prior calendar years, rounded to the nearest half percent, with a 2% maximum in each tier and any excess banked. On February 18, 2026 the Board of Retirement affirmed a 2.5% COLA for 2026, of which 2% was applied and 0.5% banked. No 2027 COLA has been affirmed yet.
How ICERS calculates the COLA
The ICERS COLA page says: “The COLA is calculated as required in the County Employees Retirement Law (CERL) based on changes in the Urban Consumer Price Index (CPI) for the Western Region.” The averaging: “The CPIs for the two prior calendar years are averaged and rounded to the nearest half-percent. Each retirement tier has a maximum COLA of 2%.”
The Board’s role
The page adds: “The Retirement Board affirms the actuary’s calculation of the COLA every year at the February Retirement Board meeting, which is generally held on the third Wednesday of the month.” The Board’s COLA Policy says: “The Cost of Living Adjustment (COLA) will be applied to each allowance effective April 1 of each year, independent of the date of retirement”.
The 2026 COLA
The page reports: “During their February 18, 2026 Meeting, ICERS’ Board of Retirement affirmed the 2026 COLA benefit of 2.5%”. The average increase behind it was 2.67%, which rounds to 2.5%, so 2% was applied to benefits and 0.5% was banked.
Older wording
The Tier 1 and 2 retirement booklet, a 2020 revision, says: “All retirees and employees who retire prior to April 1st of each year MAY receive an annual 2% cost of living raise.” The Board’s policy states the cap: “Pursuant to Government Code section 31870, which was enacted by the California Legislature in 1965 and adopted by the Imperial County Board of Supervisors effective July 10, 1992, every retirement allowance of ICERS members or their beneficiaries who retired after that date will be increased or decreased annually by an amount not to exceed 2%.”
What the documents do not say
The Government Code section is cited only as the ICERS COLA Policy cites it, and its text was not archived. The FAQ says the CPIs for the two prior calendar years are averaged, while the COLA Policy says the average West Region CPI of each of the prior two years is compared; the sources do not show how the 2.67% was computed. The benefit booklets are 2020 revisions, older than the 2024 policy and the 2026 page, and no COLA figure for any year before 2026 was found.
Where 2027 stands
No 2027 ICERS COLA is set: the Retirement Board affirms the actuary’s calculation each February, and the COLA page shows only the 2026 affirmation.
Common mistakes
- Expecting the full CPI change. Each tier has a 2% maximum, and the excess goes to the bank.
- Using one year of CPI. ICERS’ FAQ says the CPIs for the two prior calendar years are averaged.
- Assuming a retirement on or after April 1 earns the current year’s COLA. It does not.
Related: Imperial County retirement retirement decisions, how public pension decisions work, and whether California taxes pensions.
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Answer againSources
- ICERS, COLA (Imperial County Employees’ Retirement Services): icers.imperialcounty.org
- ICERS Board of Retirement, ICERS COLA Policy: imperial.granicus.com
- ICERS, Retirement Benefits Book, Tier 1 and Tier 2: icers.imperialcounty.org
- 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.