Cost-of-Living Adjustment

MPERS provides an annual COLA to eligible retired members, surviving spouses, former spouses, beneficiaries, surviving children under the age of 21, and work-related disability recipients. Regardless of which plan you are in, the annual COLA rate is based on 80% of the average percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U) for the United States, with an annual maximum of five percent. There are nuances regarding the application of COLAs for members of the various plans we administer, so we encourage you to read this page in its entirety.

Closed Plan Benefit Recipients

Closed Plan benefit recipients receive their COLA increases in October each year (if benefits were received the preceding month). The COLA rate for Closed Plan benefit recipients depends on your date of employment with the state or your work-related date of disability.

• Members employed before August 28, 1997, or members whose work-related date of disability was prior to July 1, 2004: The annual COLA rate will not be less than four percent or more than five percent, until the total increase equals 65% of your initial benefit (65% COLA cap). After you reach 65% in accumulated COLAs, your annual COLA rate will be equal to 80% of the increase in the CPI-U, with an annual maximum of five percent.
• Members employed after August 28, 1997, or members whose work-related date of disability was on or after July 1, 2004: The annual COLA rate will be equal to 80% of the increase in the CPI-U, with an annual maximum of five percent.

Year 2000 Plan Benefit Recipients

Year 2000 Plan benefit recipients receive COLA increases on the anniversary date of their retirement or BackDROP date, whichever applies. The annual COLA rate will be equal to 80% of the increase in the CPI-U, with an annual maximum of five percent.

2011 Tier Benefit Recipients

• Members of the 2011 Tier who retire directly from active service receive COLA increases on the anniversary date of their retirement. The same is true for the survivor COLAs.
• Members of the 2011 Tier who retire from a vested member status will receive their first COLA increase on the second anniversary date of their retirement. The same is true for survivor COLAs.

The annual COLA rate will be equal to 80% of the increase in the CPI-U, with an annual maximum of five percent.

How Was the 2025 COLA Calculated?

Cost-of-Living Adjustments (COLAs) are calculated using data from the Consumer Price Index for All Urban Consumers (CPI-U).

The 2023 annual average of 304.702 is subtracted from the 2024 annual average of 313.689. The difference between the 2023 and 2024 annual averages is 8.987, which is then divided by the average from 2023 (304.702).

The result of that calculation is 2.949%, which represents the percentage increase from 2023 to 2024. According to Missouri state statute, the COLA amount will be 80% of the percentage increase in the CPI-U. Therefore, the final calculation involves taking the percentage increase of 2.949% and multiplying it by 80%, resulting in 2.359%.

Consumer Price Index for All Urban Consumers (CPI-U)

Gross Increase: (313.689 – 304.702) / 304.702 = 2.949% x 80% = 2.359%

Printable COLA History Chart