Cost of Living Adjustment (COLA)
This year’s (2023) COLA rate Press Release "Cost-of-living adjustment payable to eligible payees in July 2023" (4/18/2023). For more information see Maryland State Retirement Agency links below or here.
The increased monthly benefit will be shown on the Automatic Deposit Advice mailed to the homes of all retirees on July 31.
Payees may be eligible to receive COLAs on their retirement allowance each July. The adjustment is tied to the U.S. Department of Labor’s Consumer Price Index. A member must be retired at least one year as of July 1 to be eligible to receive that year’s increase.
COLAs are effective with the July benefit payment, and are based upon changes in the Consumer Price Index. A payee must be retired for at least twelve months before they are eligible for their first COLA. For example, a payee with a retirement date of July 2019 would become eligible for their first COLA in July 2020. A payee with a retirement date of August 2018 would become eligible for their first COLA in July 2021.
Members will see the COLA beginning with their July 31, 2023 pension check/deposit. The formula used by the state is not the same that Social Security uses. The COLA rate is calculated using a formula provided in state law and is based on the change in the Consumer Price Index (CPI) for the most recent calendar year ending December 31, compared to the CPI for the prior calendar year.
For more information on your plan, please visit the Maryland State Retirement Agency's website at Retirees - Maryland State Retirement and Pension System