A cost-of-living adjustment (COLA) for PSERS members who retired on or before July 1, 2001, was passed by the General Assembly as part of the Commonwealth’s fiscal year 2026-27 budget. The COLA – a permanent, supplemental percentage increase to the member’s benefit – was signed into law by Gov. Josh Shapiro on July 12, 2026, as part of Act 21 of 2026.
Who is eligible?
- The COLA is payable only to Pennsylvania public school employees who retired on or before July 1, 2001 (Pre Act 9 of 2001 benefit enhancements) and who were receiving a monthly benefit payment on July 1, 2026.
- Members with a retirement date after July 1, 2001 and beneficiaries and survivor annuitants of members who passed prior to July 1, 2026 are not eligible.
- PSERS will notify eligible retirees prior to the increase in their monthly benefit payment.
When will the COLA be effective?
- The COLA is effective July 1, 2026.
When will members receive the COLA?
Eligible retirees will receive the COLA effective July 1, 2026.
Most* retirees will receive the new COLA adjusted monthly benefit amount plus the retroactive COLA payments for July and August in their September 30, 2026, payment.
Following a detailed review to ensure payment accuracy, PSERS established the following implementation schedule for eligible retirees to receive the COLA.
- First week of September: Eligible retirees will receive a letter from PSERS confirming their eligibility for the COLA.
- Week of Sept. 14: Eligible retirees will receive a letter detailing the amount of their September payment that will reflect the increased monthly benefit amount plus the retroactive COLA funds due from July and August.
- End of September: Eligible retirees will receive their September payment that will include the new COLA adjusted monthly benefit amount plus the retroactive COLA funds due from July and August.
- Week of Oct. 12: Eligible retirees will receive a letter detailing the amount of their October payment. The October amount will be lower than the September payment because it will reflect the new COLA adjusted monthly benefit without the retroactive COLA funds due from July and August.
- End of October: Eligible retirees will receive their October payment, which will be their new COLA adjusted monthly benefit that they will receive for life.
*Approximately 3% of eligible members will be notified of their eligibility to receive the COLA as of July 1, 2026, but will not receive their COLA increase in September due to special circumstances that require additional processing.
How much is the increase?
The increase depends upon when the eligible retiree retired.
Date of Retirement | Increase |
July 2, 2000, through July 1, 2001 | 15% |
July 2, 1999, through July 1, 2000 | 15.5% |
July 2, 1998, through July 1, 1999 | 16% |
July 2, 1997, through July 1, 1998 | 16.5% |
July 2, 1996, through July 1, 1997 | 17% |
July 2, 1995, through July 1, 1996 | 17.5% |
July 2, 1994, through July 1, 1995 | 18% |
July 2, 1993, through July 1, 1994 | 18.5% |
July 2, 1992, through July 1, 1993 | 19% |
July 2, 1991, through July 1, 1992 | 19.5% |
July 2, 1990, through July 1, 1991 | 20% |
July 2, 1989, through July 1, 1990 | 20.5% |
July 2, 1988, through July 1, 1989 | 21% |
July 2, 1987, through July 1, 1988 | 21.5% |
July 2, 1986, through July 1, 1987 | 22% |
July 2, 1985, through July 1, 1986 | 22.5% |
July 2, 1984, through July 1, 1985 | 23% |
July 2, 1983, through July 1, 1984 | 23.5% |
July 2, 1982, through July 1, 1983 | 24% |
Prior to July 2, 1982 | 24.5% |
How many retirees are impacted?
More than 31,200 PSERS retirees will collectively receive an additional $104 million in estimated COLA payments in fiscal year 2026-27. Out of that number, 97% will begin receiving their new COLA rate in September that will include retroactive COLA payments for July and August.
The estimated $104 million in annual COLA payments is in addition to the $7.7 billion already paid annually to all PSERS retirees.
Interactive maps reflecting the statewide impacts of the COLA will be available the week of Aug. 10.
Read more about general COLA information.
