An annual adjustment in wages to offset a change (usually a loss) in purchasing power, as measured by the Consumer Price Index. The Consumer Price Index is used rather than the Producer Price Index because the purpose is to offset inflation as experienced by the consumer, not the producer.
Cost-Of-Living Allowances
In many policies this is an option. Basically it takes into account an increase in the cost of living over time. This would be very important to have if you are going to buy a until you are 65 policy or a lifetime policy, as the cost of living will most certainly rise during that time, unless maybe you are fairly close to age 65 already.
(ko-la ) Cost of Living Allowance
In PERS Plan 2 and the Defined Benefit portion of PERS Plan 3, on July 1 of every year following the first full year of retirement, the monthly benefit is adjusted by the percentage change in the Consumer Price Index (CPI-U, Seattle), to a maximum of 3 percent per year.
An increase in a pension benefit, disability income benefit or life income benefit to compensate for an increase in the cost of living.
Cost of Living Allowance granted to employees based in a foreign city, where cost of living is higher than in Washington, D.C.
Cost of Living Adjustment
Social Security benefits and Supplemental Security Income payments are increased each year to keep pace with increases in the cost-of-living (inflation).
Consumer Price Index cost-of-living index