Alaska Bulletin Spells Out New COLA Calculations

02 Dec, 2022 Frank Ferreri


Juneau, AK ( -- One of the issues that is taken into account when it comes to accounting for workers' compensation benefits are cost of living adjustments, popularly known as COLAs.

A subissue that comes into play is calculating COLAs for beneficiaries that no longer reside in the state where the benefits were ordered to be paid, something Alaska recently addressed in a bulletin that detailed where it gets its numbers and what they are.

Here's a look at the bulletin's highlights.

Calculation of COLAsState law requires Alaska's Department of Labor and Workforce Development to identify an organization to calculate a COLA for a workers' compensation beneficiary when the recipient no longer resides in the state. The bulletin explained that the department tapped the Council for Community and Economic Research to provide COLA information for numbers that will be effective from 2023-2025.

Alaska COLAs. The cost of living for Alaska is the averaage cost of living for Anchorage, Juneau, and Fairbanks.

Other States. The bulletin lists the cost of living for locations around the country, but if a recipient does not live in a location on the list, then the cost-of-living ratio for the location nearest the recipient's residence must be used.

Two Places? But what if someone lives the same distance between two locations on the list? The ratio that results in a higher compensation rate must be used.

Out of Country COLA Determinations. Those get a bit more involved, so the bulletin directs questions related to out-of-country COLAs to an Administrative Officer for a COLA determination.

Keep up to date on Alaska and the rest of the U.S. at WorkCompResearch


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    About The Author

    • Frank Ferreri

      Frank Ferreri, M.A., J.D. covers workers' compensation legal issues. He has published books, articles, and other material on multiple areas of employment, insurance, and disability law. Frank received his master's degree from the University of South Florida and juris doctor from the University of Florida Levin College of Law.

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