How the Board decides
COLAs are not automatic. The Board sets them under Missouri law with some discretion, looking at the CPI-U for the preceding fiscal year and the actuary's recommendation. Handbook p. 70, Cost-of-Living Adjustments (COLAs)
| Inflation (CPI-U) last fiscal year | COLA |
|---|---|
| CPI-U less than 0.0% | 0% |
| 0.0%-2.0% | 0% or 2%* |
| At least 2.0% but less than 5.0% | 2% |
| 5.0% or more | 5% |
* 0.0% while cumulative CPI-U is below 2.0%; 2.0% when the cumulative CPI-U reaches 2.0% or more (then the cumulative calculation resets). In PSRS's example, inflation of 1% then 1.5% gives a COLA of 0% then 2%.
Handbook p. 71, PSRS/PEERS Board-Approved COLA Policy and Example; psrs-peers.org, COLAsWhat Missouri law says: If the cost of living rises 2% or more in the preceding fiscal year the board shall grant 2%; if 5% or more, 5%; below 5% the board may set the increase, never above 5% a year; no increase if the cost of living decreases. Total increases after December 31, 1976 may not exceed 80% of the allowance established at retirement. RSMo 169.070.13
When COLAs start
Your first COLA can come the second January following the retirement date. Set annually by the Board and effective with the January benefit paid on the last working day of January. Handbook p. 60, Cost-of-Living Adjustments (COLAs); p. 70, Cost-of-Living Adjustments; RSMo 169.070.13 (members retiring on or after July 1, 2001)
The limits
COLAs can't exceed 5.0% a year, and the total dollar amount of lifetime COLAs can't exceed 80.0% of your initial monthly benefit (example: $1,000 initial benefit -> at most $800 a month in total increases). Handbook p. 71, Cost-of-Living Adjustments (COLAs) and Example; RSMo 169.070.13
COLAs are compounded: each one is figured on your benefit after the last one. Handbook p. 71, COLAs are Compounded
Our example: a $1,000 benefit with 5% every year would hit the $800 limit in 2040 and stop at $1,800.
Example: 2% a year
PSRS's sample $3,213 benefit, retiring July 1, 2026, if the Board granted 2% every year. An example, not a forecast.
| From | COLA | Monthly |
|---|---|---|
| Retirement | — | $3,213 |
| January 2028 | +2% | $3,277.26 |
| January 2029 | +2% | $3,342.81 |
| January 2030 | +2% | $3,409.67 |
| January 2031 | +2% | $3,477.86 |
| January 2032 | +2% | $3,547.42 |
| January 2033 | +2% | $3,618.37 |
| January 2034 | +2% | $3,690.74 |
| January 2035 | +2% | $3,764.55 |
| January 2036 | +2% | $3,839.84 |
COLAs are set every year by the PSRS/PEERS Board. They follow a 2017 Board policy based on inflation, but the Board can change the policy and the law has some discretion.
What we use: a flat 2% a year as an example (the most common COLA), capped at the 80% lifetime limit. Real COLAs may be 0% to 5%.
Recent COLAs
| January | COLA |
|---|---|
| 2026 | 2% |
| 2025 | 2% |
| 2024 | 2% |
| 2023 | 5% |
| 2022 | 5% |
| 2021 | 2% |
| 2020 | 0% |
| 2019 | 2% |
| 2018 | 1.63% |
| 2017 | 0% |
| 2016 | 2% |
| 2015 | 2% |
| 2014 | 2% |
| 2013 | 2% |
| 2012 | 2% |
HB 2095 and SB 1779 (2026 session, COLA cap changes) did not pass. Benefit Check newsletter June 2026, PDF pp. 1-2, 2026 Legislative Session Ends
What the handbook says
- COLAs start the second January after you retire. Retire July 1, 2026 and your first possible COLA is January 2028.Handbook p. 70, Cost-of-Living Adjustments (COLAs)
- COLAs aren't automatic. The Board sets them each year using the CPI-U for the prior fiscal year and the actuary's advice.Handbook p. 70, Cost-of-Living Adjustments (COLAs)
- Under the Board's 2017 policy: CPI-U below 0% gives no COLA; 2% up to 5% gives 2%; 5% or more gives 5%. Between 0% and 2%, the CPI-U adds up year to year until it reaches 2%, which triggers a 2% COLA.Handbook p. 71, PSRS/PEERS Board-Approved COLA Policy
- Missouri law caps COLAs at 5% a year, and your lifetime COLAs can't add more than 80% of your first benefit. A $1,000 benefit can rise by at most $800.Handbook p. 71, Cost-of-Living Adjustments; RSMo 169.070.13
- COLAs compound: each one is a percentage of your current benefit, not your original one.Handbook p. 71, COLAs are Compounded
- Recent COLAs: 2.0% in January 2026, 2025 and 2024; 5.0% in 2023 and 2022; 2.0% in 2021; 0% in 2020.psrs-peers.org, COLAs, COLA History
Questions
Do PSRS retirees get raises?
PSRS's Board may grant a cost-of-living adjustment (COLA) each January, based on inflation. It isn't automatic. It can't be more than 5% a year.
When do I get my first COLA?
The second January after you retire. Retire July 1, 2026 and the first could come January 1, 2028.
Is there a limit?
Yes. All your COLAs together can't add more than 80% of your first monthly benefit.
Source: PSRS Member Handbook, 2026-2027 (as of September 2026), pp. 60, 70, 71; Benefit Check June 2026 pp. 1, 2, 2026; RSMo 169.070; psrs-peers.org pages. Last reviewed .