Cost-of-Living Adjustments (COLAs)

% increaseMPERS provides an annual COLA to eligible retired members, surviving spouses, former spouses, beneficiaries, surviving children under the age of 21 and work-related disability recipients. Regardless of which plan you are in, the annual COLA rate is based on 80% of the average percentage increase in the Consumer Price Index for all Urban Consumers for the United States (CPI-U), with an annual maximum of 5%.

Closed Plan Benefit Recipients

Closed Plan benefit recipients receive their COLA increases in October each year (if benefits received the preceding month). The COLA rate for Closed Plan benefit recipients depends on your date of employment with the state or your work-related date of disability.

Members employed before August 28, 1997
Members whose work-related date of disability was prior to July 1, 2004

  • The annual COLA rate will not be less than 4% or more than 5%, until the total increases equal 65% of your initial benefit (65% COLA cap).
  • After you reach 65% in accumulated COLAs, your annual COLA rate will be equal to 80% of the increase in the CPI-U, with an annual maximum of 5%.

Members employed after August 28, 1997
Members whose work-related date of disability was on or after July 1, 2004

  • The annual COLA rate will be equal to 80% of the increase in the CPI-U, with an annual maximum of 5%.

Year 2000 Plan Benefit Recipients

  • Year 2000 Plan benefit recipients receive COLA increases on the anniversary date of their retirement, or BackDROP date, whichever is applicable.
  • The annual COLA rate will be equal to 80% of the increase in the CPI-U, with an annual maximum of 5%.

History of COLA Rates

Printable COLA Chart