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Cost-of-Living Adjustment (COLA) on Your PERA Benefit


 

A valuable feature of your PERA benefit is that it increases annually to help offset inflation. Cost-of-living adjustments (COLA) are effective Jan. 1 of each year for eligible benefit recipients.

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.

2019 COLA Rates

Plan COLA
General Plan 1.4%
Police and Fire Plan 1.0%
Correctional Plan 2.5%

New to receiving PERA benefits?

Your first COLA will depend on the type of benefit you are receiving, the plan, and the start date. After your first adjustment, all future COLAs will be full increases.

More information

Learn how PERA determines the COLA, and the increase schedule for new benefit recipients. Check out the COLA Fact Sheets for each plan.

General Plan COLA  |  Police & Fire Plan COLA  |  Correctional Plan COLA

We’ve also listed a history of increases for PERA’s defined benefit plans. Visit the Historical Increase Rates Fact Sheet.

Annually, PERA pays more than $2 billion in benefits.

“I learned valuable information about my pension and wish I knew more about my pension when I was younger.”

89% of benefit payments are made to Minnesota residents.

*estimate based on June 2017 payments