The rule
Each July 1 (paid from the Aug. 1 payment) based on the West Region CPI for the prior year (2.67% for 2026), capped at 2%. Retired before Oct. 1, 2013: 2%. Service before and after Oct. 1, 2013: up to 2% on the part for service before that date, and 1.25% on the part for later service (0.15% on benefit above $60,000). Tier One/Tier Two members bank CPI above 2% as a carryover for years when CPI is under 2%; OPSRP members have no carryover, and an OPSRP retiree in the first year gets a prorated COLA on the pre-2013 part. Oregon PERS webpage 'Cost-of-living increases paid in August'; Oregon PERS Benefit Comparison Chart (Dec. 2024), p. 1, COLA
The COLA is applied to the pension you start with, which comes from the formula and your payment option. Whether you have a CPI carryover depends on your program.
Examples at the 2026 CPI (2.67%)
| Retiree | Yearly benefit | COLA a year |
|---|---|---|
| Retired before Oct. 1, 2013 | $30,000 | $600 $50/mo |
| Half the service before Oct. 1, 2013 | $30,000 | $487.50 $40.63/mo |
| All service after Oct. 1, 2013 | $30,000 | $375 $31.25/mo |
| All after, $80,000 a year | $80,000 | $780 $65/mo |
All-after on $80,000: 1.25% of $60,000 = $750, plus 0.15% of the rest. Oregon PERS webpage 'Cost-of-living increases paid in August'; Oregon PERS Benefit Comparison Chart (Dec. 2024), p. 1, COLA; ORS 238.360(2); ORS 238A.210(2)
Oregon PERS says the COLA is up to 2% on the part of your benefit from service before Oct. 1, 2013 and 1.25% (0.15% above $60,000) on the rest, but it doesn't publish a worked example of the split.
What we use: your share of service before Oct. 1, 2013 times the 2% rate, plus the rest times the 1.25%/0.15% rate on your whole yearly benefit.
West Region CPI by year
| Year | CPI |
|---|---|
| 2026 | 2.67% |
| 2025 | 2.81% |
| 2024 | 4.29% |
| 2023 | 8.01% |
| 2022 | 4.52% |
| 2021 | 1.74% |
| 2020 | 2.69% |
| 2019 | 3.35% |
| 2018 | 4.17% |
| 2017 | 2.14% |
| 2016 | 1.23% |
| 2015 | 2.41% |
| 2014 | 2.5% |
What the sources say
- Each July 1 (paid August 1) Oregon PERS raises benefits by the West Region CPI, capped at 2%. For 2026 CPI was 2.67%.Oregon PERS webpage 'Cost-of-living increases paid in August'
- Check with Oregon PERSRetired before October 1, 2013: 2%. Otherwise up to 2% on the part of the benefit from service before October 1, 2013 and 1.25% on later service, with only 0.15% on benefit above $60,000 a year.Oregon PERS webpage 'Cost-of-living increases paid in August'Oregon PERS describes the split in words only; the exact blending is not published, and the statute text shows only the 1.25%/$60,000 schedule.
- Tier One/Tier Two members bank CPI above 2% to use in years when CPI is under 2%. OPSRP members have no such carryover.Oregon PERS webpage 'Cost-of-living increases paid in August'
Questions
When is the COLA paid?
It takes effect July 1 and shows up in the Aug. 1 payment.
How big is it?
It follows the West Region CPI, capped at 2%. For 2026 the CPI was 2.67%, so the cap applied.
Why do some retirees get less than 2%?
Service after Oct. 1, 2013 gets 1.25% (and 0.15% on yearly benefit above $60,000). Only service before that date, or retiring before it, gets up to 2%.
What is the CPI carryover?
Tier One and Tier Two members bank CPI above 2% and use it in years when CPI is under 2%. OPSRP members have no carryover.
Source: Oregon PERS Tier One/Tier Two and OPSRP Preretirement Guides, Published June 2026, Oregon PERS Benefit Comparison Chart (Dec. 2024) p. 1; Oregon PERS webpages: Cost-of-living increases paid in August; ORS 238.360, 238A.210. Last reviewed .