Retiree Cost-of-Living Adjustment Set at 2% for January 2013

At the August 27, 2012 Public School and Education Employee Retirement Systems of Missouri (PSRS/PEERS) Board of Trustees' meeting, the Board voted to provide a 2% cost-of-living adjustment (COLA) for all eligible benefit recipients, effective January 2013. The CPI-U for July 1, 2011 to June 30, 2012 was 1.7%.

The 2% COLA is in accordance with the Funding Stabilization Policy adopted by the Board in 2011. Under the policy, in years when the change in the Consumer Price Index for Urban Consumers (CPI-U) for the preceding fiscal year (July 1 to June 30) is between 0% and 5%, a 2% COLA will be given.

However, if the change in the CPI-U is less than 0%, no increase can be given. If it is 5% or higher, the Board is required to give a 5% increase providing extra protection in times of high inflation.

Who is Eligible for COLAs?

Eligible PSRS service and disability retirees may receive cost-of-living adjustments (COLAs) on monthly benefits beginning the second January following their retirement date. For example, if you retire July 1, 2013, you become eligible for COLAs in January 2015. Qualified beneficiaries may also receive COLAs.

For PSRS members who retired in 1986 and earlier, you have reached your 80% COLA cap and are no longer eligible for a COLA. Individuals who retired in 1987 will receive a .62% COLA, which is the maximum allowed under the 80% COLA cap. For those who retired in the years 1988-2011, you will receive a 2% COLA increase effective January 2013.

Eligible PEERS service and disability retirees may receive cost-of-living adjustments (COLAs) on monthly benefits beginning the fourth January following their retirement date. For example, if you retire July 1, 2013, you become eligible for COLAs in January 2017. Qualified beneficiaries may also receive COLAs.

For PEERS members who retired in 1986 and earlier, you have reached your 80% COLA cap and are no longer eligible for a COLA. PEERS members who retired in 1987 will receive a 1.3% COLA, which is the maximum allowed under the 80% COLA cap. For those who retired in the years 1988-2009, you will receive a 2% COLA increase effective January 2013.

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