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  • 2022 COLA

    Aug 17, 2021, 9:43 AM By MOSERS
    The SSA is anticipating the largest COLA increase of the last 40 years at around 6% for 2022. Does this mean that MOSERS retirees can anticipate something close to the maximum COLA increase for MOSERS members for 2022 of 5%?

    We are unable to provide the 2022 COLA at this time, typically you can expect to see it by the end of January. For 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. The maximum increase is 5% (minimum 0%).

    We calculate COLAs based on the CPI-U, the Consumer Price Index for Urban Consumers. To learn more, review the Consumer Price Index Frequently Asked Questions on the Bureau of Labor Statistics website.

    See the History of COLAs and the COLA page on our website for more information.

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  • The 2021 COLA Rate

    Jan 27, 2021, 1:34 PM By MOSERS
    When are we going to know what the cola rate going to be for 2021 ??  

    The COLA rate for 2021 is 0.987%. We calculate it every year in mid-January. This COLA rate applies to: 

    • All retired members of MSEP 2000 and MSEP 2011
    • MSEP retirees who have reached their 65% COLA cap
    • MSEP retirees first employed on or after August 28, 1997

    If you were employed before August 28, 1997, and retired under the MSEP, 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 equals 65% of your initial base benefit amount. 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, which, as noted above, is 0.987% for 2021.

    The purpose of a COLA for any type of pay or retirement benefit is to help you cope with inflation. COLAs help you maintain your purchasing power as inflation increases the cost of various items you buy. See the article, The 2021 COLA is Here, and the COLA page on our website for more information. 

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  • 2021 COLA

    Jan 13, 2021, 12:00 AM By MOSERS
    When will we know what the cola will be for 2021?

    We expect to have the data by this Friday and we will post it ASAP.

    COLAs are payable on the anniversary of your retirement date except for:

    • Retirees who converted from MSEP to MSEP 2000 during the conversion window in 2000 will have COLAs payable in July.
    • Retirees who elected a BackDROP will have COLAs payable on the anniversary of their BackDROP date.
    • Terminated-vested members of the MSEP 2011 will receive their first COLA on the second anniversary of their 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.

    *If you retired under the MSEP, and were hired before August 28, 1997, your COLA may be different. See the MSEP/MSEP 2000 Handbook.

    Please see the COLA page on our website for additional information.

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  • 2020 COLA Determined

    Feb 5, 2020, 3:15 PM By MOSERS
    WHEN WILL WE KNOW WHAT THE COLA FOR 2020 WILL BE (RETIREE)

    The cost-of-living adjustment (COLA) for 2020 is 1.450%. This applies to:

    • All retired members of MSEP 2000 and MSEP 2011
    • MSEP retirees who have reached their 65% COLA cap
    • MSEP retirees first employed on or after August 28th, 1997

    Please see the COLA page on our website for additional information.

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  • State Employee Pay Raises & Retiree COLAs

    Feb 20, 2019, 11:46 AM By MOSERS

    (Note - We have edited the question slightly to clarify it.) If all state employees get a raise, for example, a 3% raise from the legislature, will retired state employees also get a raise?

    No. The two are not connected. A change in active state employee pay has no impact on benefit amounts for retired general state employees (or retired judges).

    However, by law, regardless of whether active state employees get a raise or not, MOSERS retirees receive an annual cost-of-living adjustment (COLA) of 0 - 5%. The amount is based on the increase in the Consumer Price Index (CPI). Retired general state employees (and judges) receive a COLA each year on the anniversary of their retirement date, unless one of the following exceptions apply:

    • Retirees who converted from MSEP to MSEP 2000 during the conversion window in 2000 receive COLAs each year in July.
    • Retirees who elected a BackDROP receive COLAs each year on the anniversary of their BackDROP date.
    • MSEP 2011 members first employed after January 1, 2018 who leave state employment prior to retirement eligibility will receive their first COLA on the second anniversary of their retirement.

    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. You can find more information about retiree COLAs on our website.

    Additional Note: Legislators and statewide elected officials who took office on or after July 1, 2000 (members of MSEP 2000 or MSEP 2011) may have their benefit adjusted according to the percentage increase in pay for an active legislator or statewide elected official but receive no other COLAs.

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  • COLA This Year?

    Dec 11, 2018, 8:09 AM By MOSERS

    Will there be any COLA this year?

    Every year, we calculate and announce the retiree COLAs in mid-January. We won’t have data for the 2019 COLA until mid-January of 2019 because the information necessary to make that calculation is based on a comparison of changes from 2017 to 2018. The rate calculation is based on 80% of the percentage increase in the average CPI from one year to the next with a maximum increase of 5% (minimum 0%).* 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.

    Watch our website in January for more information. Learn more on the COLA pageand in the upcoming issue of RetireeNew coming in late December.

    * If you retired under the MSEP, and were hired before August 28, 1997, your COLA will be determined based on the annual COLA calculation except that you will receive a minimum 4% COLA (maximum 5%) until accumulated COLAs reach 65% of your initial (or original) benefit. This is called your COLA cap. After your benefit has increased to the COLA cap amount, your COLA will be between 0-5% each year.

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  • COLAs and BackDROP

    Nov 16, 2018, 1:36 PM By MOSERS

    My retirement date is January 1, 2019 and my backdrop date is March 1, 2016. Will I receive a COLA on my backdrop date in March, 2019?

    Typically, members receive a COLA each year on the anniversary of their retirement date, unless one of the exceptions* applies. In your case, since you elected BackDROP, your COLAs will be payable each year on the anniversary of your BackDROP date rather than on the anniversary of your retirement date. In your specific case, your COLAs will be awarded in March, and you will receive a COLA on March 1, 2019.

    We will determine the 2019 COLA in mid-January of 2019, and will announce the COLA amount on our website. We will send you (all members) a notice, either in the mail or in your MOSERS Document Express online mailbox, when the COLA is applied to your monthly benefit payment.

    *The other exceptions of when COLAs are applied include:

    • Retirees who converted from MSEP to MSEP 2000 during the conversion window in 2000 have COLAs payable each year in July.
    •  MSEP 2011 members hired after January 1, 2018 who leave state employment prior to retirement eligibility, will receive their first COLA in retirement on the second anniversary of their retirement.
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  • 2019 COLA Announcement

    Oct 2, 2018, 2:34 PM By MOSERS

    Will there be raise for retirees for 2019? When will it be decided and how much?

    Yes, if you are referring to the annual cost-of-living adjustments (COLAs), assuming there is an increase in Consumer Price Index. We will calculate the 2019 COLA in January 2019. The rate calculation is based on 80% of the percentage increase in the average Consumer Price Index from one year to the next. The maximum increase is 5% (minimum 0%). We will get the data we need to make the calculation in mid-January 2019.

    As a retired general state employee, you will receive a COLA each year on the anniversary of your retirement date, unless one of these exceptions applies to you:

    • Retirees who converted from MSEP to MSEP 2000 during the conversion window in 2000 have COLAs payable each year in July.
    • Retirees who elected a BackDROP will have COLAs payable each year on the anniversary of their BackDROP date.
    • MSEP 2011 members hired after January 1, 2018 who leave state employment prior to retirement eligibility, will receive their first COLA on the second anniversary of their retirement.

    Watch our website in January for more information. Learn more on the COLA page and in the upcoming issue of RetireeNews coming in December.

    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.

    Note: If you are a legislator or statewide elected official who retired under MSEP 2000 or MSEP 2011, you do not automatically get COLAs. Your benefit will be adjusted only if there is an increase in pay or active members of the general assembly or statewide elected officials, respectively.

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  • COLA for 2019?

    Jul 26, 2018, 4:06 PM By MOSERS

    When we will I know when I am getting an annual COLA for 2019? I thought it was mid-July when MOSERS announced it.

    MOSERS will be able to determine the 2019 COLA in January 2019. The rate calculation is based on 80% of the percentage increase in the average Consumer Price Index from one year to the next with a maximum increase of 5% (minimum 0%). The information necessary to make that calculation will be available in January 2019 and based on a comparison of changes from 2017 to 2018.

    In January 2018, we determined that the COLA for 2018 is 1.704%. Each year, you will receive a COLA on the anniversary of your retirement date, unless one of these exceptions applies to you:

    • Retirees who converted from MSEP to MSEP 2000 during the conversion window in 2000 have COLAs payable each year in July.
    • Retirees who elected a BackDROP* will have COLAs payable each year on the anniversary of their BackDROP date rather than on the anniversary of their retirement date.
    • MSEP 2011 members hired after January 1, 2018 who leave state employment prior to retirement eligibility, will receive their first COLA in retirement on the second anniversary of their retirement.

    We will send you a notice, either in the mail or in your MOSERS Document Express online mailbox, when the COLA is applied to your monthly benefit payment.

    *BackDROP is available only to general state employees who are members of MSEP & MSEP 2000 and who work at least two years beyond normal retirement eligibility.

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  • Pay Raises

    Jul 5, 2018, 8:52 AM By MOSERS

    are we possibly getting a raise in January

    If you are asking about a pay raise for active state employees (versus a cost-of-living adjustment for MOSERS retirees), please understand that MOSERS is not involved in any decision making related to state employee pay.

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Disclaimer

We strive to provide the most accurate information possible in our answers to Rumor Central questions. However, occasionally, laws, policies or provisions change and individual circumstances may vary. Please contact a MOSERS benefit counselor or see the handbooks in our website Library for more detailed information. If there is any difference between the information provided in this blog or on the MOSERS website and the law or policies that govern MOSERS, the law and policies will prevail. See our Privacy, Security & Legal Notices for more information.