Cost-of-Living Adjustments (COLAs)Eligible service and disability retirees may receive cost-of-living adjustments (COLAs) on monthly benefits beginning the second January following their retirement date. Qualified beneficiaries may also receive COLAs.
The January 2025 COLA is 2%. Current Missouri law states that COLAs cannot exceed 5% per year and the dollar amount of the COLAs in your lifetime cannot exceed 80% of your original monthly retirement benefit.
Each year, the PSRS/PEERS Board of Trustees votes on the setting of a Cost-of-Living Adjustment (COLA) effective the following January. The process for setting COLAs is governed by Missouri law, but gives the Board some discretion. The decision is made according to Board policy and is based in part on the Consumer Price Index for Urban Consumers (CPI-U) as determined by the U.S. Bureau of Labor Statistics for the previous fiscal year, as well as the recommendation of the Systems’ actuary.
The current COLA policy was adopted by the Board in 2017. The policy contains a cumulative CPI calculation when the CPI-U falls between 0.0% and 2.0%.
| CPI-U | COLA per Board-Approved Funding Policy |
|---|---|
| Less than 0.0% | 0.0% |
| 0.0%-2.0% | 0.0% when CPI-U is cumulatively below 2.0% |
| 0.0%-2.0% | 2.0% when CPI-U cumulatively reaches 2.0% or more* |
| 2.0%-5.0% | 2.0% when the CPI-U is at least 2.0%, but less than 5.0% |
| 5.0% or more | 5.0% |
| *resets cumulative calculation after a COLA is provided | |
The cumulative COLA calculation only applies when the CPI-U is between 0.0% and 2.0%. The cumulative COLA calculation period resets to 0.0% after a 2.0% COLA is provided and begins again.
The CPI-U in Year 1 is 1.0%. No COLA will be granted that year, because the CPI-U is between 0.0% and 2.0%. However, the 1.0% will carry over for the next year’s calculation.
The CPI-U in Year 2 is 1.5%. This year, because the cumulative CPI-U is 2.5% (1.0% + 1.5%) and is between 2.0% and 5.0%, a 2.0% COLA will be granted. The cumulative calculation will then reset to zero for the following year.
| Year | COLA |
|---|---|
| 2025 | 2.0% |
| 2024 | 2.0% |
| 2023 | 5.0% |
| 2022 | 5.0% |
| 2021 | 2.0% |
| 2020 | 0.0% |
| 2019 | 2.0% |
| 2018 | 1.63% |
| 2017 | 0.0% |
| 2016 | 2.0% |
| 2015 | 2.0% |
| 2014 | 2.0% |
| 2013 | 2.0% |
| 2012 | 2.0% |
| 2011 | 0.0% |
| 2010 | 0.0% |
| 2009 | 5.0% |
| 2008 | 2.7% |
| 2007 | 4.3% |
| 2006 | 2.5% |
| 2005 | 3.3% |
| 2004 | 2.1% |
| 2003 | 1.1% |
| 2002 | 3.3% |
| 2001 | 3.7% |
| 2000 | 2.0% |
| 1999 | 1.7% |
| 1998 | 2.3% |
| 1997 | 2.8% |
| 1996 | 3.0% |
| 1995 | 2.5% |
| 1994 | 3.0% |
| 1993 | 3.1% |
| 1992 | 4.70% |
| 1991 | 4.0% |
| 1990 | 4.0% |
| 1989 | 4.0% |
| 1988 | 3.7% |
| 1987 | 1.7% |
| 1986 | 3.7% |
| 1985 | 4.0% |
| 1984 | 2.6% |
| 1983 | 4.0% |
| 1982 | 4.0% |
To determine how much of an overall (compounded) COLA increase you have received, you cannot simply total the COLA percentages that have been given over the years.
For more information on the COLAs you have received, log in or contact us