Once you meet the eligibility requirements, including age and number of years retired, your retirement benefit will permanently increase each year. This cost-of-living adjustment (COLA) — subject to pension caps and limitations — is 50 percent of the previous year’s annual rate of inflation (never less than 1 percent or more than 3 percent of your benefit). The adjustment percentage is applied only to the first $18,000 of your Single Life Allowance, even if you selected a different option at retirement.
You will begin receiving an annual COLA when you are:
- Age 62 or older and retired for five or more years;
- Age 55 or older and retired for ten or more years; or
- Any age and have received a disability pension for five or more years.
When you die, if you selected a pension payment option that pays a lifetime benefit to your beneficiary, and if the beneficiary is your spouse, he or she will be eligible to receive half of the COLA amount you would have received.
For more information, visit our Cost-of-Living Adjustment page.