Cost-of-Living Adjustment (COLA)

 

September 23, 2020

Benefit Recipients with Benefit Effective Date Prior to April 1, 2018, to Receive 0.5% COLA

At its September meeting, the Board of Trustees voted to approve a 0.5% cost-of-living adjustment (COLA) increase for eligible retirees and beneficiaries in 2021. Previously, COLAs were suspended from 2018 through 2020.

As a result of HB 49, passed in 2017, the COLA is now based on the year-to-year change in the Consumer Price Index for Urban Wage Earners (CPI-W), with a range of 0% to 2.5%, unless the Board chooses to adjust the COLA above or below the CPI-W. However, any adjustment is only enacted if the System’s actuary determines it will not materially impair the fiscal integrity of the System or is necessary to preserve the fiscal integrity of the System.

Benefits that originate from the same member account will not have more than a four-year waiting period in total.

All SERS pension increases should be reported to Social Security if you are receiving Social Security benefits based on your spouse’s Social Security earnings.

Before You Call: Answers to Frequently Asked QuestionsCLICK HERE