At its September meeting, the Board unanimously voted to approve a 2.5% cost-of-living adjustment (COLA) increase for eligible benefit recipients in 2027.
By statute, SERS’ COLA is influenced by the year-to-year change in the Consumer Price Index (June 2025 to June 2026) for Urban Wage Earners (CPI-W).
This year’s CPI-W was 3.5%. With input from SERS’ actuary, CavMac, the Board approved the increase of 2.5%.
According to CavMac, the 2.5% COLA amount will not materially impair SERS’ funded status.
The 2027 COLA takes effect on the benefit anniversary of the recipient’s effective date of retirement.
Benefit recipients whose benefit effective date is on or after April 1, 2018, must wait until the fourth anniversary of their allowance or benefit before receiving a COLA.