How the PSERS COLA works
PSERS pensions do not rise automatically. Any increase must be passed by the General Assembly. Act 21 of 2026, signed July 12, 2026, gave a permanent increase effective July 1, 2026 to members who retired on or before July 1, 2001: 15% for those who retired in 2000–01, rising by half a point for each earlier year to 24.5% for those retired before July 2, 1982. Members who retired after July 1, 2001 did not receive it.
What to expect in 2027
There is no scheduled COLA for 2027. Retirees after July 2001 would need new legislation.
What a COLA is worth over time
On a $3,000 monthly pension, a 2% simple increase adds $60 a month every year, so after 20 years the check is $4,200. A 2% compounded increase reaches about $4,460. A plan with no automatic increase stays at $3,000 unless lawmakers act, and at 3% inflation that check buys about 45% less after 20 years. Our COLA guide compares how other plans handle it.
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