The cost-of-living adjustment (COLA) for 2025 is 2.359%.

This COLA applies to:

• MSEP and Judicial Plan retirees who have reached their COLA cap.
• MSEP and Judicial Plan retirees first employed on or after August 28, 1997.
• Retired general state employees who are members of MSEP 2000.
• Retired general state employees who are members of MSEP 2011 and retired directly from active service.
• Judicial Plan 2011 retirees.

The purpose of a COLA for any type of pay or retirement benefit is to help offset the effects of inflation. COLAs allow you to maintain your purchasing power as inflation increases the cost of various items you buy.

Consumer Price Index

The Federal Bureau of Labor Statistics determines the Consumer Price Index (CPI) by calculating changes in the prices of consumer goods and services each month. The CPI is used to measure the inflation rate and show larger economic trends annually. To learn more about the CPI, visit the Bureau of Labor Statistics’ Frequently Asked Questions (FAQs).

COLA Calculation

According to Missouri state law, each January, MOSERS must compare the average CPI for the calendar year just completed (2024) to the average CPI from the prior year (2023) to determine the percentage change between the two years. You will not receive a COLA less than zero. (In other words, MOSERS does not decrease benefit amounts based on the CPI calculation.)

If you are a retired general state employee, your COLA is based on 80% of the percentage increase in the average CPI from one year to the next. Your COLA can range from a minimum of 0% to a maximum of 5%.

If you retired under MSEP and were employed before August 28, 1997, you will receive a minimum 4% COLA until you reach your COLA cap. This happens when accumulated COLAs equal 65% of your initial base benefit. After reaching the cap, your COLA will be calculated like other retirees and range from a minimum of 0% to a maximum of 5%.

How MOSERS calculates the COLA for retirees is outlined in state law. The Social Security Administration uses a different process to calculate COLAs for Social Security benefits:

• SSA uses the CPI-W index; MOSERS uses the CPI-U index, the Consumer Price Index for Urban Consumers.
• SSA bases their COLA off the 3rd calendar quarter change; MOSERS COLAs are based on the percentage increase in the average CPI from one year to the next using data from the entire year.
• The SSA COLA is 100% of the change; the MOSERS COLA is 80% of the percentage increase from one year to the next.

COLA Payment

You will receive your COLA in the same month each year. In general, it will be on the anniversary of your retirement date, with the following exceptions:

• If you converted from MSEP to MSEP 2000 during the conversion window in 2000, we will apply your COLA each July.
• If you elected a BackDROP, we will apply your COLA each year on the anniversary of your BackDROP date on the anniversary of your BackDROP date each year.
• If you are a retired inactive-vested member of MSEP 2011 (i.e., you left state employment after becoming vested and retired at a later date), we will apply your first COLA on the second anniversary of your retirement (rather than the first anniversary).
• If you are a retired legislator who took office after July 1, 2000, your benefit will be adjusted according to the increase in pay for an active member of the general assembly. No other COLAs will be provided.
• If you are a retired statewide elected official who took office after July 1, 2000, your benefit will be adjusted according to the increase in pay for an active member in that office. No other COLAs will be provided.

See our Cost-of-Living Adjustments page for more information about COLAs, including historical information on the following topics:

History of COLAs

2025 COLA Memo

COLA Video