No IPERS COLA, but two dividends with a history

• IPERS benefits have no cost-of-living adjustment for most members. The 1.5% yearly COLA is only for sheriffs and deputy sheriffs who retire on or after July 1, 2024.Member Handbook (2025), p. 9; p. 50, Annual Adjustment of Allowance
• Members who retired on or before June 30, 1990, and their survivors, get a November dividend once a year to help with inflation. Each year's dividend is the previous one plus an adjustment of no more than 3%, and it is never less than $25. For 2025 the adjustment was 2.67%, paid to about 818 people.Member Handbook (2025), p. 50, November Dividend; Iowa Code §97B.49F(1); IPERS Benefits Advisory Committee minutes (Jan. 26, 2026 packet), p. 3
• The Favorable Experience Dividend (FED) was for members who retired after June 30, 1990 and before March 1, 2013. The last FED payments went out in January 2014, which emptied the account. By law, no money can go back into it until IPERS is fully funded, and IPERS was 92.17% funded on June 30, 2025.Member Handbook (2025), p. 50, Favorable Experience Dividend (FED); IPERS Retiree Update, December 2025

The November dividend

A November dividend is guaranteed under Iowa Code 97B.49F(1) for members who retired June 30, 1990 or earlier (and their beneficiaries and contingent annuitants). It is paid once a year to help offset post-retirement inflation. It has a base payment guaranteed by law plus a percentage increase applied only if IPERS's actuary certifies it can be supported. Member Handbook (2025), p. 50, November Dividend

An illustration

Not an IPERS example: a retiree whose last dividend was $600 and who received $12,000 in monthly payments last year, with 2025's 2.67%:

For 2025, IPERS's Benefits Advisory Committee reported a 2.67% adjustment, paid to 818 people, about $2,090,000 in all. IPERS Benefits Advisory Committee minutes (Jan. 2026), PDF p. 3, minutes: November Dividend Adjustment

The Favorable Experience Dividend (FED)

For members who retired after June 30, 1990 and before March 1, 2013, a Favorable Experience Dividend (FED) reserve account was set up under Iowa Code 97B.49F(2). The final FED payments were made in January 2014, exhausting the account. By law IPERS cannot transfer more money into it until the Trust Fund is fully funded. Member Handbook (2025), p. 50, Favorable Experience Dividend (FED)

How it was figured: December monthly allowance x 12 x complete years retired x a percentage the system sets, not over 3%; paid the last business day of January to recipients retired at least one year. Iowa Code §97B.49F(2)(a), (c)(5), (d)

IPERS was 92.17% funded on June 30, 2025, so the FED can't be refilled yet. IPERS Retiree Update, December 2025

The handbook limits the FED to members who retired before March 1, 2013; Iowa Code 97B.49F(2)(a) defines qualified recipients as all members who retired on or after July 1, 1990, with no end date. Moot while no FED is paid (none since January 2014). Member Handbook (2025), p. 50; Iowa Code §97B.49F(2)(a)

Older increases in Iowa law

• Minimum benefit for members who retired July 1, 1953 - June 30, 1990 with 10+ years: $200 a month plus $10 for each year beyond 10 (up to 20 more years), effective Jan. 1, 1997, reduced for early retirement or another option. Iowa Code §97B.49E(2)
• Jan. 1, 1999 increases: 15% for members who retired before July 1, 1986; 7% for members who retired July 1, 1986 - June 30, 1990. Iowa Code §97B.49G(3)(c)-(d)

Because your monthly benefit stays level, it buys less each year. See Payment options and Taxes, or estimate your benefit in the calculator.