- IPERS benefits have no cost-of-living adjustment for most members. The 1.5% yearly COLA is only for sheriffs and deputy sheriffs who retire on or after July 1, 2024.Member Handbook (2025), p. 9; p. 50, Annual Adjustment of Allowance
- Members who retired on or before June 30, 1990, and their survivors, get a November dividend once a year to help with inflation. Each year's dividend is the previous one plus an adjustment of no more than 3%, and it is never less than $25. For 2025 the adjustment was 2.67%, paid to about 818 people.Member Handbook (2025), p. 50, November Dividend; Iowa Code §97B.49F(1); IPERS Benefits Advisory Committee minutes (Jan. 26, 2026 packet), p. 3
- The Favorable Experience Dividend (FED) was for members who retired after June 30, 1990 and before March 1, 2013. The last FED payments went out in January 2014, which emptied the account. By law, no money can go back into it until IPERS is fully funded, and IPERS was 92.17% funded on June 30, 2025.Member Handbook (2025), p. 50, Favorable Experience Dividend (FED); IPERS Retiree Update, December 2025
The November dividend
A November dividend is guaranteed under Iowa Code 97B.49F(1) for members who retired June 30, 1990 or earlier (and their beneficiaries and contingent annuitants). It is paid once a year to help offset post-retirement inflation. It has a base payment guaranteed by law plus a percentage increase applied only if IPERS's actuary certifies it can be supported. Member Handbook (2025), p. 50, November Dividend
An illustration
Not an IPERS example: a retiree whose last dividend was $600 and who received $12,000 in monthly payments last year, with 2025's 2.67%:
For 2025, IPERS's Benefits Advisory Committee reported a 2.67% adjustment, paid to 818 people, about $2,090,000 in all. IPERS Benefits Advisory Committee minutes (Jan. 2026), PDF p. 3, minutes: November Dividend Adjustment
Only the 2025 adjustment (2.67%) is in our sources. Each retiree's dividend depends on their own payment history.
We show the 2025 adjustment only. IPERS sends each retiree their own amount.
What would settle it: IPERS's November dividend notice for the current year.
The Favorable Experience Dividend (FED)
For members who retired after June 30, 1990 and before March 1, 2013, a Favorable Experience Dividend (FED) reserve account was set up under Iowa Code 97B.49F(2). The final FED payments were made in January 2014, exhausting the account. By law IPERS cannot transfer more money into it until the Trust Fund is fully funded. Member Handbook (2025), p. 50, Favorable Experience Dividend (FED)
How it was figured: December monthly allowance x 12 x complete years retired x a percentage the system sets, not over 3%; paid the last business day of January to recipients retired at least one year. Iowa Code §97B.49F(2)(a), (c)(5), (d)
IPERS was 92.17% funded on June 30, 2025, so the FED can't be refilled yet. IPERS Retiree Update, December 2025
The handbook limits the FED to members who retired before March 1, 2013; Iowa Code 97B.49F(2)(a) defines qualified recipients as all members who retired on or after July 1, 1990, with no end date. Moot while no FED is paid (none since January 2014). Member Handbook (2025), p. 50; Iowa Code §97B.49F(2)(a)
Older increases in Iowa law
- Minimum benefit for members who retired July 1, 1953 - June 30, 1990 with 10+ years: $200 a month plus $10 for each year beyond 10 (up to 20 more years), effective Jan. 1, 1997, reduced for early retirement or another option. Iowa Code §97B.49E(2)
- Jan. 1, 1999 increases: 15% for members who retired before July 1, 1986; 7% for members who retired July 1, 1986 - June 30, 1990. Iowa Code §97B.49G(3)(c)-(d)
Because your monthly benefit stays level, it buys less each year. See Payment options and Taxes, or estimate your benefit in the calculator.
Common questions
Does IPERS give retirees a cost-of-living increase?
No, not Regular members, which includes school employees. Your monthly benefit stays the same for life. The 1.5% COLA in Iowa law is only for sheriffs and deputy sheriffs who retire on or after July 1, 2024.
Who gets the IPERS November dividend?
Members who retired on or before June 30, 1990, and their beneficiaries and contingent annuitants. For 2025, the adjustment was 2.67%.
Is the Favorable Experience Dividend still paid?
No. The last FED payments were made in January 2014, which emptied the account. By law it can't be refilled until IPERS is fully funded.
Source: IPERS Member Handbook, Updated July 2025, pp. 9, 50. Also: IPERS Benefits Advisory Committee minutes (Jan. 2026); IPERS Retiree Update (Dec. 2025); Iowa Code §§ 97B.49E, 97B.49F, 97B.49G. Last reviewed .