- COLAs aren't automatic. Each year the Legislature votes whether to grant one, based on the increase in the CPI or 3%, whichever is less, applied only to the first $13,000 of your benefit. The FY2027 COLA (July 1, 2026) was 3% of $13,000: $390 a year, or $32.50 a month.MTRS web page 'Your benefit payment', Cost-of-living adjustments; MTRS news (July 13, 2026); M.G.L. c. 32, § 102
- Your first COLA comes after one full July-June fiscal year of retirement. Retire on or before June 30, 2027 and it arrives July 1, 2028; retire July 1, 2027 or later and you wait until July 1, 2029.Ready for Retirement 2026 p. 30 and p. 38, Appendix D
- The COLA base was $12,000 from 1998 to 2011 and has been $13,000 since November 2011 (Chapter 176 of the Acts of 2011). The FY2027 budget set up a COLA Reserve Fund that may later pay for a higher base and an extra $100-$300 a year for some long-retired members, but none of that is in effect yet.MTRS web page 'Your benefit payment'; MTRS news (July 13, 2026)
A worked example
MTRS's example: a $40,000 benefit with $390 COLAs becomes $40,390, then $40,780, then $41,170. Each COLA becomes part of your benefit. Missing a COLA costs $390 a year for life: $7,800 over 20 years. MTRS web page 'Your benefit payment', Cost-of-living adjustments; MTRS news (July 13, 2026); Ready for Retirement 2026, p. 30 and p. 38, Appendix D; M.G.L. c. 32, § 102(a), (c)
Our COLA projection assumes 3% on the first $13,000 every year, the amount granted in most recent years. It is an assumption, not a promise.
Our projection assumes 3% of the first $13,000 each year.
MTRS web page 'Your benefit payment', Cost-of-living adjustments; MTRS news (July 13, 2026)Your first COLA
After one full July-through-June fiscal year of retirement: retire on or before June 30, 2027 -> first COLA July 1, 2028; retire on or after July 1, 2027 -> July 1, 2029. MTRS web page 'Your benefit payment', Cost-of-living adjustments; MTRS news (July 13, 2026); Ready for Retirement 2026, p. 30 and p. 38, Appendix D; M.G.L. c. 32, § 102(a), (c)
| If you retire | First COLA |
|---|---|
| June 30, 2026 | July 1, 2027 |
| August 15, 2026 | July 1, 2028 |
| June 30, 2027 | July 1, 2028 |
| July 1, 2027 | July 1, 2029 |
| January 31, 2028 | July 1, 2029 |
Our engine on MTRS's rule; the first and last rows of MTRS's own example are June 30, 2027 and July 1, 2027.
COLA history
From 1998 to 2011 the base was $12,000 (maximum $360 a year). In November 2011, under Chapter 176 of the Acts of 2011, the base increased to $13,000 (maximum $390). MTRS web page 'Your benefit payment', Cost-of-living adjustments
| July 1 of | COLA | Base | Most a year |
|---|---|---|---|
| 2026 | 3% | $13,000 | $390 |
| 2025 | 3% | $13,000 | $390 |
| 2024 | 3% | $13,000 | $390 |
| 2023 | 3% | $13,000 | $390 |
| 2022 | 5% | $13,000 | $650 |
| 2021 | 3% | $13,000 | $390 |
| 2020 | 3% | $13,000 | $390 |
| 2019 | 3% | $13,000 | $390 |
| 2018 | 3% | $13,000 | $390 |
| 2017 | 3% | $13,000 | $390 |
| 2016 | 3% | $13,000 | $390 |
| 2015 | 3% | $13,000 | $390 |
| 2014 | 3% | $13,000 | $390 |
| 2013 | 3% | $13,000 | $390 |
| 2012 | 3% | $13,000 | $390 |
What the FY2027 budget may add later
The FY2027 budget created a COLA Reserve Fund (7.5% of annual PRIT earnings above the assumed return). Only once it is funded: an enhanced COLA for retirees who retired before July 1, 2020, with 20+ years, whose allowance is under 80% of their salary average: $100 a year (retired 10 to <15 years), $200 (15 to <20), $300 (20+). Not in effect yet. MTRS news (July 13, 2026)
Who got the July 1, 2026 COLA: Retired on or before June 30, 2025 (also Option C survivors of such retirees, survivors of members who died in service on or before June 30, 2025, and accidental death benefit recipients whose benefit began by then). MTRS web page 'Your benefit payment', Cost-of-living adjustments; MTRS news (July 13, 2026); Ready for Retirement 2026, p. 30 and p. 38, Appendix D; M.G.L. c. 32, § 102(a), (c)
The calculator shows the date of your first COLA and what 3% of the first $13,000 would add.
Questions
How much is the MTRS COLA?
The Legislature votes each year whether to grant a COLA, based on the increase in the CPI or 3%, whichever is less, applied to the first $13,000 of the allowance; COLAs are not guaranteed. COLAs are cumulative: each one becomes part of the allowance. The 2026 COLA was 3% of $13,000: $390 a year, $32.50 a month.
When do I get my first MTRS COLA?
After one full July-to-June fiscal year of retirement. Retire June 30, 2027 and it's July 1, 2028; retire July 1, 2027 and it's July 1, 2029.
Source: MTRS Ready for Retirement reference guide, 2026, pp. 30, 38. Also: MTRS web page 'Your benefit payment'; MTRS news (July 13, 2026); M.G.L. c. 32, § 102. Last reviewed .