2019 Retirement benefit increases announced

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2019 Retirement benefit increases announced

Good news for retirees

Retired members of the PERA General Plan will receive a 1.4 percent increase in their PERA retirement benefits, effective Jan. 1, 2019.

The 1.4 percent increase reflects 2018 legislative changes to PERA’s retirement plans. The General Plan cost-of-living adjustment (COLA) will be equal to 50 percent of the increase announced by Social Security. Social Security announced a 2.8 percent benefit increase for 2019. The 1.4 percent increase is good news for PERA retirees since the previous increases were at 1 percent for many years.

Members of the Correctional Plan will receive a 2.5 percent increase in their PERA retirement benefits, effective Jan. 1, 2019. This increase is a result of the legislative change calling for the Correctional Plan COLA to be equal to 100 percent of the increase announced by Social Security, with a maximum 2.5 percent increase.

The Correctional Plan can provide a larger increase to plan members since the plan is relatively better funded than the other plans PERA administers.  In the future, the Correctional Plan COLA maximum could be reduced to 1.5 percent if the plan’s funding status declines.

The Police & Fire Plan members will continue to receive a 1 percent increase in their PERA retirement benefits.  The Police & Fire COLA is not currently tied to an inflation index.