We’ve got good news to report this month for members in the San Francisco Employees’ Retirement System (SFERS) retirement system. June 30 was the end of the 2024/2025 fiscal year, when all of the plans report on their investment totals and whether or not they are high enough to trigger a Supplemental Cost of Living Adjustment (SCOLA).
Happily, the SFERS reported a preliminary Total Plan investment return of 8%, which may trigger SCOLA because it is higher than the 7.2% required minimum increase.
If approved, we won’t know whether it will be .5%, 1% or 1.5% until December, when an analysis will be performed to determine how much the excess earnings will finally end up being.
If granted, you will receive a supplemental COLA retroactive to July 1, 2025. Expect any final payments to made next February, which will include seven months of retroactive Supplemental COLA. A nice chunk of change.
Remember, the Supplemental COLA is an additional adjustment to be paid on top of your Basic COLA for a maximum total of 3.5% for both.
See the chart below for three year estimated averages for SFERS $37.2 Billion total fund performance.
