Retirees under Tier 1, Tier 1 Classic and the P&F Retirement Plan Legacy are eligible for a 3% annual cost-of-living adjustment (COLA). Regular COLA’s are compounded and paid each February. There is no proration of COLA.
Retirees under Tier 2 are eligible for an annual cost-of-living adjustment (COLA) limited to the increase in the Consumer Price Index (San Jose-San Francisco-Oakland, U.S. Bureau of Labor Statistics index, CPI-U, December to December), capped at 2.0% per year. The first COLA will be prorated based on the number of months retired.
See the municipal code here.