Tier 1
Up to 4%
of your original benefit each year.
Tier 1 Highlights (2026-27), p. 22; Utah Code 49-13-407; URS Employer Guide, Tier 1 Summary of Benefits; URS Actuarial Valuation (Jan. 1, 2025), App. 2, p. 100, item 17Tier 2 Hybrid
Up to 2.5%
of your original benefit each year.
Tier 2 Highlights (2026-27), pp. 2, 21; Comparing Tier 2 Plans (2026-27), p. 16; Utah Code 49-22-308; URS Actuarial Valuation (Jan. 1, 2025), App. 2, p. 119, item 17Short answer: starting one year after you retire, URS raises your benefit each year on your retirement anniversary by the CPI, up to 4% of your original benefit in Tier 1 or 2.5% in Tier 2. Increases are simple, not compounded, and CPI above the cap is banked for later years. Not sure of your tier? Which tier am I? Working again under the reduced-benefit option pauses it: see working after retirement and payment options. See URS's Tier 2 example in the calculator.
Cost-of-living increases begin one year after you retire and are paid on the anniversary of your retirement date. They follow the CPI (average for the calendar year vs. the previous calendar year), up to 4% (Tier 1) or 2.5% (Tier 2) of your original benefit. CPI increases above the cap are banked and used in later years when the CPI is below the cap. A COLA can't lower your benefit. Utah Code 49-13-407, 49-22-308; Tier 1 Retirement Guidebook (Sept. 2026), p. 14; Comparing Tier 2 Plans (2026-27), p. 16; Tier 1 Highlights (2026-27), p. 22
"Of your original benefit" means the increases are simple, not compounded. URS Actuarial Valuation (Jan. 1, 2025), App. 2, p. 100, p. 119 (2.5%); URS Employer Guide, Tier 1 Summary of Benefits
How the cap and the bank work
Our engine on URS's rules, not a URS example, with a made-up CPI (5%, 1%, 3%, 2%): a $2,000 original benefit from a July 1, 2027 retirement. The first increase is on July 1, 2028.
| Tier 1 | CPI | Paid | Banked | Monthly |
|---|---|---|---|---|
| 2028 | 5% | 4% | 1% | $2,080.00 |
| 2029 | 1% | 2% | 0% | $2,120.00 |
| 2030 | 3% | 3% | 0% | $2,180.00 |
| 2031 | 2% | 2% | 0% | $2,220.00 |
| Tier 2 | CPI | Paid | Banked | Monthly |
|---|---|---|---|---|
| 2028 | 5% | 2.5% | 2.5% | $2,050.00 |
| 2029 | 1% | 2.5% | 1% | $2,100.00 |
| 2030 | 3% | 2.5% | 1.5% | $2,150.00 |
| 2031 | 2% | 2.5% | 1% | $2,200.00 |
"Paid" is a percent of the $2,000 original benefit, and each increase is added on top of the ones before.
CPI above the cap is banked for later years. Our calculator never lets a negative CPI reduce the bank or the benefit, and pays the bank down in the first year the CPI is below the cap.
Simple COLA on the original benefit, capped, with excess CPI banked.
What would settle it: URS's COLA calculation rule or COLA history.
Other points
- Retirees reemployed under the 90-day reduced-benefit option get no COLA while reemployed. Utah Code 49-11-1205(5)(c); Post-Retirement Reemployment brochure (Sept. 2026), PDF p. 3
- A closed group of Tier 1 retirees also receives a Restoration of Purchasing Power (ROPP) payment. URS Actuarial Valuation (Jan. 1, 2025), App. 2, p. 100, item 17
The calculator shows your first COLA date and the most your first increase could be.
Questions
How much is the URS COLA?
The CPI increase, up to 4% a year for Tier 1 and 2.5% for Tier 2, figured on your original benefit.
When does the URS COLA start?
One year after you retire, on the anniversary of your retirement date, and each year after that.
Is the URS COLA compounded?
No. It's simple: each increase is a percent of your original benefit, not of your current one.
Source: URS Tier 1 Noncontributory and Tier 2 Public Employees Retirement System Highlights, 2026-27, effective July 1, 2026, Tier 1 p. 22; Tier 2 pp. 2, 21. Also: Tier 1 Retirement Guidebook (Sept. 2026); Comparing Tier 2 Plans (2026-27); URS Actuarial Valuation (Jan. 1, 2025); URS Employer Guide; Post-Retirement Reemployment brochure (Sept. 2026); Utah Code §§ 49-11-1205, 49-13-407, 49-22-308. Last reviewed .