Cost-of-Living Adjustments
COLA
There are cost-of-living adjustments (“COLAs”) for retirees and survivors who have been receiving a benefit for at least six months. The COLA is applied each July 1st and is based on the change in the Consumer Price Index (CPI).
COLAs are provided at 100% of the change in the CPI up to 3%, plus half of the change in the CPI in excess of 3%, up to a maximum of 5% for benefits attributable to credited service credited prior to July 1, 2012 and earned and unused sick leave credited prior to January 1, 2013. (“Tier 1”). A maximum COLA of 2.5% applies to retirement benefits attributable to credited service credited after July 1, 2012 and earned and unused sick leave credited after January 1, 2013 (“Tier 2”).
Effective July 1, 2025, a 2.9% Cost-of-Living Adjustment for benefits based on credited service prior to July 1, 2012 and earned, unused sick leave prior to January 1, 2013 and a 2.5% Cost-of-Living Adjustment for benefits based on credited service as of July 1, 2012 and earned unused sick leave as of January 1, 2013 was approved for all eligible annuitants receiving benefits for at least six months prior to the payment effective date. Please review your July gross payment amount for the adjustment. You may contact the ERS at ContactERS@mncppc.org or 301-454-1415 if you have questions after reviewing your July statement.
Example
If the CPI is 4% then retirees and beneficiaries receive 100% up to 3%, plus half of 1% (which is the excess above 3%) or 3.5% for Tier 1 service and 2.5% (the maximum) for Tier 2 service.
