HARRISBURG, PA – Pennsylvania Public School Employees Retirement System (PSERS) members who retired on or before July 1, 2001, will receive a cost-of-living adjustment (COLA) effective July 1, 2026, in their September payment, consistent with legislation approved by Gov. Josh Shapiro and the General Assembly as part of the Commonwealth’s 2026-27 budget package.
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 remaining 3% include members with special circumstances that require additional processing.
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.
Per the legislation, the COLA percentage increase varies based on a member’s retirement date. Detailed information regarding eligibility requirements and a complete schedule of retirement dates and applicable COLA percentages can be found on PSERS’ website.
PSERS currently provides legislative district maps showing membership and benefit payment data across Pennsylvania. Interactive maps reflecting the statewide impacts of the COLA will be available on PSERS’ website next week.
“Pennsylvania’s public school retirees devoted decades to educating students and supporting schools,” said Executive Director Uri Monson. “We’re grateful to the members of the General Assembly for approving this cost-of-living adjustment and for Governor Shapiro for signing it into law. This adjustment will provide additional financial support to eligible retirees throughout the Commonwealth.”
The General Assembly recently passed the COLA, a permanent supplemental percentage increase to existing benefits, as part of the Commonwealth’s fiscal year 2026-27 budget. The extra $104 million that will be paid annually is in addition to the $7.7 billion members already receive annually.
Under PSERS’ Retirement Code, only the General Assembly can authorize COLA increases for PSERS retirees.
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About the Board of Trustees
The 15-member Board of Trustees is an independent administrative board of the Commonwealth of Pennsylvania. The board stands in a fiduciary relationship to PSERS’ members regarding investments and disbursements of the system’s funds. The board’s other functions outlined in the Public School Employees’ Retirement Code include certifying contribution rates, authorizing the system’s actuarial valuation and independent audit, publishing an annual financial statement, and overseeing the operational activities performed by the system’s executive director and chief investment officer.
About the Pennsylvania Public School Employees' Retirement System
PSERS, founded in 1917, began operations in 1919 to oversee a statewide defined benefit pension plan for public school employees. PSERS' role expanded upon the passage of Act 5 of 2017 to include oversight of two new benefit options consisting of defined benefit and defined contribution (DC) components and a stand-alone DC plan. As of June 30, 2025, PSERS had a total net position of about $83.7 billion and a membership of about 262,000 active, 255,000 annuitants and beneficiaries, and 26,000 vested inactive members.