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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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