MoDOT & Patrol Employees’ Retirement System
Cost-of-Living Adjustment
Most people do not think about inflation in abstract terms. They feel it in everyday life: a grocery bill that stretches a little less, utility costs that creep up, a trip to the pharmacy that costs more than it used to.
Over time, even small price increases affect how far a monthly benefit goes.
This is where the MPERS cost-of-living adjustment (COLA) plays an important role. MPERS provides an annual COLA to eligible retired members and beneficiaries to help offset the effects of inflation and support purchasing power over time. MPERS’ COLA is calculated at 80 percent of the increase in the Consumer Price Index for All Urban Consumers (CPI-U), with an annual maximum of 5 percent. The timing and application of the adjustment depend on the member’s plan and, in some cases, date of employment.
A COLA is designed to help offset inflation, not eliminate every change in cost a household may experience. But without one, a fixed benefit loses ground steadily as everyday costs rise. Reviewing your annual statement, staying familiar with your COLA details by plan, and keeping up with MPERS updates will help you understand what your COLA means for you each year.