By David Archuleta, Executive Director

brown spiral notebook cover with words - Cost of Living Adjustments and calculator in upper right hand of image.

The first COLA to a retiree’s benefit is made on July 1st of the year in which the retired member reaches age 65 for Tiers 1 & 2, and age 67 for Tiers 3 & 4, or on July 1st of the year following the member’s retirement date, whichever is later. This adjustment is either equal to one-half the percent change in the Consumer Price Index (CPI) of the preceding calendar year, or up to a maximum of four percent, whichever is less. The annual adjustment will not be less than two percent unless CPI is less than two percent, in which case the COLA will be the same as the percent change in CPI. However, until the program becomes fully funded ERB will only issue percentage of the amount described above.

In summary, the cost-of-living adjustment for eligible retirees as of July 1, 2024 is:

  • 1.89% for retirees with 25 or more years of service credit and whose monthly benefit is less than or equal to the median benefit of $1,746.63 as of June 30, 2023.
  • 1.68% for all other eligible retirees.
  • 2.1% for all disability retirees who have been retired for at least 3 years.

For additional information please read the Cost of Living Adjustment letter announcement.