Coming in January: 2% COLA for Eligible Benefit Recipients
The Public School and Education Employee Retirement Systems of Missouri (PSRS/PEERS) Board of Trustees has approved a 2% cost-of-living adjustment (COLA) for eligible benefit recipients, effective Jan. 1, 2027.
“We are very happy to be able to deliver a COLA to our retired members for another consecutive year,” said PSRS/PEERS Board Chair Beth Knes. “Our commitment remains unwavering: We are dedicated to delivering financial security to our members along with the priority of keeping the Systems healthy.”
How the COLA Is Set
The COLA is based on the Consumer Price Index for Urban Consumers (CPI-U). For fiscal year 2026 (July 1, 2025 – June 30, 2026), the CPI-U rose 3.53%. According to Board policy, if CPI-U increases between 2% and 5%, a 2% COLA may be granted.
COLAs are compounded: Each year’s increase builds on previous increases. That means to calculate their 2027 COLA, an eligible benefit recipient would take their current benefit — not their original benefit — and multiply it by 2%.