Alaska Cost-of-Living Allowance (COLA): A Refresher
The Alaska Cost-of-Living Allowance (COLA) was established
in 1966 to assist retirees who elect to remain in state to defray
the higher cost of living in Alaska. If you are eligible, you
may receive the COLA in addition to your monthly benefit.
The amount of COLA a PERS member receives is 10% of
their base retirement benefit or $50, whichever is greater.
Who is Eligible to Receive COLA?
If you reside in Alaska after you retire, you may receive COLA
in addition to your regular monthly benefit. PERS Tier I
retirees and their survivors are eligible upon retirement,
regardless of age. All other PERS Defined Benefit Plan retirees
and their survivors are eligible at age 65, and they must apply
for COLA when they are first eligible to receive it. All members
receiving disability benefits are eligible, regardless of age or
date of hire.
“Residing in Alaska” means domiciled and physically
present in Alaska. A domicile is that place where you have
your true, fixed, and permanent home and principal
establishment and to which, whenever you are absent, you
intend to return. An absence, which exceeds 90 days,
constitutes a break in residency for COLA purposes. If you become a resident out of state and later return to
Alaska and become a resident again, you are eligible to
receive COLA if you complete and submit the necessary
forms. You will not lose COLA permanently; you can stop
and start it.
Who is Eligible to Receive COLA?
Yes, you are entitled to COLA during the time you are gone
if you return to Alaska in less than 91 days. Please note
that a period of 90 consecutive days does not start over
with a new calendar year. You may be asked to provide
copies of your travel documentation, which shows your
departure and return dates.
You are NOT eligible for COLA and you are required to
notify the Division in writing (use form 02-824a or your
own written notice) if:
- You intend to be gone from Alaska continuously for
more than 90 days;
- Your current absence exceeds 90 consecutive days
(COLA entitlement ends retroactively to the end of
the month of your departure from Alaska); or
- Your principal domicile is no longer in Alaska.
Am I entitled to COLA if I am gone from Alaska for more than 90 days due to illness?
You may continue to receive COLA for up to 6 months if:
- You intend to be gone from Alaska continuously for
more than 90 days;
- You are out of Alaska because of illness, and
- Your physician certifies your absence is necessary on
a form (gen023) provided by the Division.
If your absence exceeds six months, COLA will stop on the
first day of the seventh month following the date you left.
If your illness began before leaving Alaska, you must make
every effort to notify the Division before departing Alaska.
When does COLA stop and start?
COLA will stop on the first of the month following your
departure from Alaska. If you receive COLA to which you
are not entitled, you are required to repay it to the PERS.
The Division will notify you of your options for repaying
an overpayment. COLA will start again on the first of the
month AFTER:
- You return to Alaska; and
- Your notification (form 02-1896a) is received by
the Division.
If your notification is received or postmarked after the first
of the month, COLA will not start again until the following
month, regardless of your return date to Alaska. To avoid
missing out on COLA benefits, you should submit your
notification as soon as you return to Alaska. You may handdeliver
or mail your notification form to the Division. Mailed
notifications must be postmarked in Alaska. Private meter
postmarks will not be accepted. If a postmark date is
illegible, your notification is presumed to have been mailed
five working days before the date the notification is received.
Are there different rules if I am an alternate payee?
A QDRO can award a portion of this allowance to the
alternate payee in the same proportion as the regular benefit.
Although it is highly recommended the order specifically
address this allowance, in those orders that do not and
where the alternate payee is not receiving a flat dollar amount
of the regular benefit, we will assume COLA is also a shared
entitlement. Eligibility to receive COLA is based on where
the member resides. No alternate payee may receive a
portion of the COLA if the member lives outside Alaska.
PERS Alaska Statute 39.35.670 — A person who knowingly
makes a false statement, or falsifies or permits to be falsified
a record of this system, in an attempt to defraud the system,
is guilty of a Class A Misdemeanor and upon conviction is
punishable by a fine of not more than $500 or by
imprisonment for not more than 12 months, or by both.
Still have questions?
Please contact the Division to speak with a representative.
You can find more COLA information and all of the
associated forms on our website here.
