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 only applied 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.