How the Virginia VRS COLA works
VRS raises benefits every July 1 based on the Consumer Price Index. Plan 1 gets the first 3% of inflation plus half of the next 4%, up to 5%. Plan 2 and Hybrid get the first 2% plus half of the next 2%, up to 3%. The raise starts on the July 1 after one full calendar year of retirement (later for reduced retirements with under 20 years). It shows up in the August 1 payment.
What to expect in 2027
The next COLA takes effect July 1, 2027, based on 2026 inflation, and appears in the August 1, 2027 payment.
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.