The final FY21 budget still requires approval of the full Legislature and the Governor; COLA will not be included in November benefit payments
In mid-October, the Governor submitted a revised FY2021 budget proposal, which included a 3% COLA on the first $13,000 of your MTRS benefit, retroactive to July 1, 2020.
The House and Senate have now approved their versions of the FY2021 budget with the COLA intact. The House and Senate will appoint a budget conference committee to work out the differences in their budgets, and the budget conference report will require another vote of the full Legislature before it is sent to the Governor for final approval.
As a reminder, the MTRS cannot pay a COLA unless it is included in the final state budget approved by the Legislature and signed into law by the Governor. Since the November pension warrant is now closed, the earliest the COLA can be paid is December 2020.
Once the final FY2021 budget is ultimately signed into law, the COLA will be payable to those retirees whose retirement date was on or before 06/30/2019.
We will continue to monitor the progress and keep you informed as information becomes available.
For more information on the COLA and your benefit payment please visit Your benefit payment – Cost-of-living adjustment eligibility and history.