July payment will include a COLA of 3% on the first $13,000 of your benefit
As you may know, the Governor and Legislature have approved a cost-of-living adjustment (COLA) as part of the Commonwealth’s FY2022 budget. Effective July 1, 2021, this COLA provides an increase of three percent on the first $13,000 of your retirement benefit, for a maximum increase of $390 per year or $32.50 per month (3% x $13,000/year = $390/year: $390/year ÷ 12 months = $32.50/month).
You are eligible to receive this COLA if you are:
- a retiree who retired on or before June 30, 2020;
- a survivor of an Option C retiree who retired on or before June 30, 2020;
- a survivor of a member who died while in active service on or before June 30, 2020; or,
- an accidental death benefit recipient whose benefit began on or before June 30, 2020.
If you are eligible to receive this COLA, it will be included in your July 2021 payment.
Your monthly gross amount for July includes the FY2022 COLA and will then be your new monthly gross amount until any future COLAs are granted. As a reminder, retirement and survivor benefits are paid at the end of each month; thus, the allowance that you receive at the end of July is the payment for July.
For more information on the COLA and your benefit payment, please visit Your benefit payment – Cost-of-living adjustments, How to read a check or direct deposit statement and Pension payment schedule.