Cost-of-Living Adjustments

MOSERS provides annual cost-of-living adjustments (COLAs) to retired members and their surviving beneficiaries. The purpose of a COLA is to increase your pay or pension benefits to help with inflation. A COLA allows you to maintain your purchasing power as inflation increases the cost of goods and services.

How are MOSERS COLAs calculated?

For retired general state employees, COLAs are based on 80% of the percentage increase in the average Consumer Price Index (CPI) from one year to the next. A COLA can range from a minimum of 0% to a maximum of 5%.

This calculation is based on law in the Revised Statutes of Missouri:

  • MSEP: Chapter 104.415
  • MSEP 2000: Chapter 104.1045

See the Summary of Plan Benefits (All Plans) brochure for more information. 

When will I receive my COLA?

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

  • If you converted from MSEP to MSEP 2000 during the conversion window in 2000, your COLA will be applied each July.
  • If you elected BackDROP, your COLA will be applied each year on the anniversary of your BackDROP date.
  • If you are a retired inactive-vested member of MSEP 2011, your first COLA will be applied on the second anniversary of your retirement (rather than the first anniversary). 

We will send you a notice, either in the mail or in your MOSERS Document Express online mailbox, during the month when you get your COLA.

What CPI is used for the COLA calculation?

We calculate COLAs based on the CPI-U, the Consumer Price Index for Urban Consumers.

To learn more visit the U.S. Bureau of Labor Statistics' Consumer Price Index Frequently Asked Questions.

What is the COLA cap?

If you were employed before August 28, 1997, and retired under MSEP, you have a COLA cap.

In this situation, you will get a COLA of at least 4% each year (maximum 5%) until you reach your COLA cap. You reach the COLA cap when the sum of your COLAs equal 65% of your initial benefit amount.

Example:

$1,000 (Initial Base Benefit) x .65 (65%) = $650 (COLA Cap) 

  • After reaching your COLA cap, your annual COLA will be equal to 80% of the percentage increase in the average Consumer Price Index (CPI) from one year to the next. The COLA can range from a minimum of 0% to a maximum of 5%. You will continue getting a COLA after you have reached your COLA cap. We will simply calculate it differently.
  • The COLA section on your Annual Benefit Statement contains an estimated date you will reach the COLA cap. Typically, members reach the COLA cap around 12 to 13 years after retirement.

More Information

History of COLAs

COLA Memo

COLA Video

MOSERS Comparison Calculator - Allows members of MSEP to compare the impact of COLAs in MSEP with those in MSEP 2000 over time