APERS retirees (including DROP participants) receive an annual cost-of-living increase in their retirement benefit on July 1 each year once they have been retired or participated in the DROP for twelve months. With ACT 366 of 2021, the General Assembly changed the way the COLA will be calculated for some members.
Members first hired before July 1, 2022 -- After you have received at least 12 monthly benefit payments, each July 1 your payments will be increased by 3% over the amount of the previous year's payments.
Members first hired on or after July 1, 2022 -- After you have received at least 12 monthly benefit payments, each July 1 your payments will be increased over the amount of the previous year's payments by the lesser of the following:
- Three percent (3%), or
- The percentage change in the Consumer Price Index for Urban Wage Earnings and Clerical Workers (CPI-W) over the one-year period ending in the December preceding the redetermination date.
If the CPI-W is a negative amount or zero, your payment will remain the same as the previous year.
