Reminder: 2% COLA Coming in January for Eligible PSRS/PEERS Retirees

As the new year approaches, many retirees receiving benefits from the Public School and Education Employee Retirement Systems of Missouri (PSRS/PEERS) can look forward to a financial boost. A 2% cost-of-living adjustment (COLA) will take effect Jan. 1, 2026, for eligible benefit recipients. This increase will begin on Friday, Jan. 30, 2026, benefit payments.

This marks the sixth consecutive year that the PSRS/PEERS Board of Trustees has approved a COLA, underscoring their ongoing commitment to helping retirees maintain purchasing power in retirement.

How the Board Determines COLAs

The COLA is based on the Consumer Price Index for Urban Consumers (CPI-U). Between June 2024 and June 2025, the CPI-U rose by 2.67%. According to the Board’s funding policy:

• If the CPI-U increases between 2% and 5%, a 2% COLA is granted.
• If the CPI-U exceeds 5%, a 5% COLA may be granted.
• If the CPI-U is below 2%, a COLA may not be granted unless cumulative inflation reaches the 2% threshold over multiple years.

Because the CPI-U exceeded 2% this year, retirees will receive the full 2% increase.

Compounded Benefits

It’s important to note that COLAs are compounded. This means each year’s increase is applied to your current benefit amount, not your original benefit. Over time, this compounding effect can significantly increase your monthly retirement income.

Who Is Eligible?

Eligibility differs for PSRS and PEERS retirees. Generally, PSRS service and disability retirees become eligible for COLAs beginning the second January after their retirement date; for PEERS retirees, it’s the fourth January after their retirement date. Qualified beneficiaries may also receive COLAs.

If you’re unsure about your eligibility, you can log in to your PSRS/PEERS Web Member Services account or contact us