How does the NYSTRS COLA work?
Each year, eligible retirees get 50% of the March-to-March rise in the Consumer Price Index, rounded up to the next tenth of a percent, but never less than 1% or more than 3%. That percent is applied only to the first $18,000 of your Maximum benefit, and the increase starts with the September benefit payment.
The COLA is figured on the Maximum even if you chose a payment option, and a surviving spouse on a lifetime benefit gets half of it (see survivor benefits). It's the same in every tier.
How it works
- Eligible retirees get an automatic COLA of 50% of the March-to-March CPI increase, rounded up to the nearest tenth of a percent, never less than 1% or more than 3%. It applies only to the first $18,000 of the Maximum benefit and starts with the September payment.Handbook p. 45; Retired Members' Handbook p. 9; Compilation of Laws 2026, Introduction (Educ. Law § 532-a); 2026 Benefit Profile insert p. 2
- You're eligible if you are at least 62 and retired five years, at least 55 and retired 10 years, or receiving a NYSTRS disability benefit for five years. A surviving spouse of an eligible retiree receiving a lifetime benefit gets half the COLA. Accidental death benefit recipients of five years get 100%.Handbook p. 45; Retired Members' Handbook p. 9
- Example: the 1.8% COLA for 2024-25 meant a maximum increase of $27 a month (1.8% of $18,000, divided by 12).Retired Members' Handbook p. 4 (reproduced Resource newsletter)
- The COLA law was enacted in 2000. NYSTRS reported that the 1.8% COLA for 2024-25 brought the cumulative maximum monthly increase since then to $508.50. Retirees whose Maximum benefit is under $18,000 get a smaller, prorated increase.Retired Members' Handbook p. 4 (reproduced Resource newsletter)
Who is eligible
- At least age 62 and retired for at least five years
- At least age 55 and retired for at least 10 years
- Receiving a NYSTRS disability benefit for at least five years, regardless of age
- Surviving spouse of an eligible retiree, receiving a lifetime benefit: one-half of the COLA the retiree would have received
- Receiving an accidental death benefit (including COVID-19 accidental death benefit) for at least five years, regardless of age: 100% of the COLA
What the formula gives
The COLA percent for a given March-to-March CPI increase, and what it adds a month. Our engine, from the rules above. The 3.6% row matches NYSTRS's 1.8% COLA example: $27 a month at most (Retired Members' Handbook p. 4).
| CPI increase | COLA | Added a month, Maximum of $18,000+ | On a $12,000 Maximum |
|---|---|---|---|
| 1% | 1% | $15.00 | $10.00 |
| 2.6% | 1.3% | $19.50 | $13.00 |
| 3.6% | 1.8% | $27.00 | $18.00 |
| 5% | 2.5% | $37.50 | $25.00 |
| 8% | 3% | $45.00 | $30.00 |
Above $18,000, the size of your pension doesn't change the COLA in dollars. Earlier COLAs count toward the $18,000. Retired Members' Handbook p. 9; Compilation of Laws 2026, Introduction
Questions
When does the NYSTRS COLA start?
Once you're eligible, increases begin with the September benefit payment. At least age 62 and retired for at least five years, or At least age 55 and retired for at least 10 years.
Is the COLA on my whole pension?
No. It applies only to the first $18,000 of your Maximum retirement benefit, even if you chose an option.
How big can it be?
Between 1% and 3% a year. On $18,000 that's $180 to $540 a year.
Related: taxes on your NYSTRS pension and working after retirement.
Source: NYSTRS Active Members' Handbook, Updated October 2026, p. 45. Also: Retired Members' Handbook pp. 4, 9; Compilation of Laws 2026 Introduction; 2026 Benefit Profile insert p. 2. Last reviewed .