Cost-of-Living Adjustment (COLA)

A three-year cost-of-living adjustment (COLA) suspension is in effect for all retirees for the years 2018, 2019, and 2020. Upon resumption of the COLA, it will be indexed to the percentage increase in the CPI-W (the measure of inflation used by Social Security), not greater than 2.5%, with a floor of 0%.

In addition, effective April 1, 2018, new benefit recipients must wait until the fourth anniversary of their benefit for COLA eligibility.

Benefits that originate from the same member account will not have more than a four-year waiting period in total. An example of this would be if a member retires, choosing a joint life plan with a spouse as beneficiary, and passes away two years after the retirement date. The spouse’s waiting period shortens to two years.

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.

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