Cost-of-living adjustments (COLAs) are statutory benefit increases designed to help retirees maintain purchasing power as inflation affects the cost of goods and services. These adjustments are calculated using specific economic indicators and implemented according to established legal frameworks.
2025 Adjustment
New York City Employees’ Retirement System (NYCERS) has announced a 1.2% cost-of-living adjustment for eligible retirees covering the period from September 2025 through August 2026. This adjustment is mandated by New York state law and is designed to provide an annual cost-of-living increase to help offset inflation.
The increase will be reflected in pension payments received on September 30, 2025. The 1.2% adjustment is applied specifically to the first $18,000 of a retiree’s annual pension benefit, regardless of the payment option chosen at retirement.
For eligible retirees with an annual benefit of $18,000 or more, this translates to a maximum monthly increase of $18.
The COLA percentage represents 50% of the annual rate of inflation, rounded up to the nearest tenth. The adjustment is capped between 1% and 3% annually.
Eligibility and Notification
Eligibility for the COLA varies based on criteria such as age and the number of years retired. NYCERS will notify eligible retirees of their COLA rate by mail at the end of September.
Resources
- NYCERS cost-of-living adjustment process, view a 90-second-video available here.
- Background information from the New York State Comptroller’s office here.
- For information about what COLA is, view the COLA Fact Sheet.
