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Cost-of-Living Adjustment (COLA)

A COLA payment is an adjustment, based on the cost-of-living index, that will permanently increase the retirement benefit you receive from the New York State and Local Retirement System. It is designed to address future inflation as it occurs.

Payments for COLA equal 50 percent of the cost-of-living index and could be as much as 3 percent, but no less than 1 percent. COLA is calculated on the first $18,000 of your retirement benefit or the actual amount of your benefit, if less. Once COLA payments begin, they continue automatically and increase each September.

The September 2009 COLA will equal 1.0 percent, up to a maximum annual increase of $180.00, or $15.00 per month before taxes. Since the rate of inflation for the period March 2008 through March 2009 was below 0, this year's COLA is the 1 percent minimum increase.

To begin receiving COLA payments, you must be:

  • Age 62 or older and retired for five or more years; or
  • Age 55 or older and retired for ten or more years (uniformed employees such as police officers, firefighters and correction officers); or
  • A disability retiree for five years; or
  • The spouse of a deceased retiree receiving a lifetime benefit under an option elected by the retiree at retirement. An eligible spouse is entitled to one-half the COLA amount that would have been paid to the retiree when the retiree would have met the eligibility criteria.
  • A beneficiary receiving the accidental death benefit for five or more years on behalf of a deceased Employees' Retirement System member.

If you are eligible for COLA, you will receive a letter indicating how much you will be receiving prior to your September 30th pension payment, when the increase goes into effect. Those who become eligible after September will begin receiving the COLA in the month after they first become eligible. If you want more information, you may contact our Call Center toll-free at 1-866-805-0990 or 518-474-7736 in the Albany, New York area. You will be asked to enter your Social Security number and date of birth.

You may also want to read our brochure, Permanent COLA