COLA (Cost-of-Living Adjustment) Updates (MSRB)

FY 2026 COLA STATUS

We are pleased to inform you that if you retired before July 1, 2025, and are otherwise eligible, the State Retirement Board has implemented the Cost-of-Living Adjustment (COLA) for the July payroll. Effective July 1, 2026, the COLA is 3% of the first $13,000 of your annual benefit paid in monthly installments.

What is a COLA?

The COLA is a Cost-of-Living Adjustment for eligible retired state employees receiving a pension. A COLA is handled by the Legislature, which includes Senators, Representatives and the Governor. Each year, they may or may not recommend a COLA amount to include in the state's annual budget.

If you have additional questions about the COLA, please contact your local State Senator and Representative. Visit https://malegislature.gov/ to find your Legislator’s contact information.

As always, you can view your benefit pay statements online at www.mass.gov/payinfo. Your ID is on your statement below your name.

COLA Modification Approved with FY'27 Budget

As part of the FY'2027 Budget, Governor Maura Healey approved a provision that would establish the creation of a Cost-of-Living Reserve Fund for the Massachusetts State Employees' Retirement System (MSERS) and the Massachusetts Teachers' Retirement System (MTRS), as well as a fund for other public retirement systems. This fund would be used as a reserve for future COLA liabilities. 

Additionally, the budget includes a modified COLA benefit for retirees who have been retired for at least 10 years. Per the approved legislation, those who have been retired for at least 10 full years as of June 30 of the prior fiscal year, and are otherwise eligible for a COLA, will receive an additional $100. Those who have been retired for at least 15 years will receive an additional $200. Those who have retired for at least 20 years will receive an additional $300. To be eligible, a member must have been retired before July 1, 2020, have more than 20 years of creditable service, and have a pension of less than 80%. 

Please note: The implementation of the modified COLA will not be immediate. The Board is working on implementing the new rules, and an update will be provided when available.