| Plan | Yearly increase |
|---|---|
| MIP | 3% of your first pension, each Oct. 1 (not compounded) Planning Your Retirement (R0613C, 5/26), p. 46, Post-retirement pension increases; MPSERS annual report FY2025, p. 28, Postemployment Adjustments; p. 95; MCL 38.1343c(b) |
| Basic | No scheduled post-retirement increase. When investment returns exceed 8% on retired-life assets, a distribution of excess earnings may be paid (an annual supplemental payment in March); MIP retirees' distribution amount is zero. Planning Your Retirement (R0613C, 5/26), p. 46 ('Basic Plan retirees do not receive a scheduled post-retirement increase'); MPSERS annual report FY2025, p. 28, p. 95 (supplemental payment only); MCL 38.1404a(3)-(5), (9) |
| Pension Plus | Pension Plus retirees receive no annual post-retirement increase. MPSERS annual report FY2025, p. 28 ('Pension Plus members do not receive an annual post-retirement increase'); p. 95 ('Retired under Pension Plus or Pension Plus 2: no increases'); MCL 38.1343c |
| Pension Plus 2 | Pension Plus 2 retirees receive no annual post-retirement increase. MPSERS annual report FY2025, p. 95 ('Retired under Pension Plus or Pension Plus 2: no increases'); Choosing Your Retirement Plan (R2053C Rev. 9/24), pp. 5-12 (none described) |
ORS example: MIP, $1,200 a month
Retired December 1, 2025. The first October 1 at least a year later is October 1, 2027.
| From | Added | Monthly |
|---|---|---|
| Start | — | $1,200 |
| October 1, 2027 | +$36 | $1,236 |
| October 1, 2028 | +$36 | $1,272 |
| October 1, 2029 | +$36 | $1,308 |
Planning Your Retirement (R0613C, 5/26), p. 46, MIP post-retirement increase
The increase is figured on your initial pension (after any early reduction; before any equated advance). Planning Your Retirement (R0613C, 5/26), p. 46, Post-retirement pension increases; MPSERS annual report FY2025, p. 28, Postemployment Adjustments; p. 95; MCL 38.1343c(b)
Related guides
Your plan decides whether you get an increase at all; see Which plan am I in? Survivors under a survivor option share in the MIP increase. An early-retirement cut lowers the base the increase is figured on, which Retiring early explains. Try the calculator with a MIP example to see the first three increases.
What the sources say
- MIP retirees get a 3% increase each October 1, starting with the first October 1 after a full year of retirement. It is always 3% of the original pension (not compounded), so it adds the same dollar amount each year.MCL 38.1343c(b); Planning Your Retirement (R0613C, 5/26), p. 46
- Example: a MIP retiree who started Dec. 1, 2025 at $1,200 a month gets $1,236 on Oct. 1, 2027, $1,272 in 2028 and $1,308 in 2029.Planning Your Retirement (R0613C, 5/26), p. 46
- Survivors under the 100% option get the same increase; under 75% or 50%, they get 75% or 50% of it.Planning Your Retirement (R0613C, 5/26), p. 46
- Basic retirees have no scheduled increase. In years when investment returns beat 8%, a share of the excess may be paid out.Planning Your Retirement (R0613C, 5/26), p. 46; MPSERS annual report FY2025, p. 95; MCL 38.1404a(3)-(5)
- Pension Plus and Pension Plus 2 retirees get no yearly increase.MPSERS annual report FY2025, p. 28 ('Pension Plus members do not receive an annual post-retirement increase'), p. 95 ('Retired under Pension Plus or Pension Plus 2: no increases')
Questions
Does MPSERS give a cost-of-living increase?
MIP retirees get 3% of their first pension added each October 1. It isn't compounded, so each raise is the same dollar amount. Basic Plan retirees have no scheduled increase. Pension Plus and Pension Plus 2 retirees get no yearly increase.
When does the first MIP increase arrive?
On the first October 1 that is at least one full year after your retirement effective date, then every October 1 after that.
Do survivors get the increase?
100% survivors get the same increase; 75% / 50% survivors get 75% / 50% of it.
Estimate your starting pension →
Unofficial guide. MPSERS and the Office of Retirement Services decide your pension.
Source: Planning Your Retirement (R0613C), Michigan Office of Retirement Services, Rev. 5/26, pp. 46. MPSERS Annual Comprehensive Financial Report, FY ended Sept. 30, 2025, pp. 28, 95. Michigan law, 1980 PA 300: MCL 38.1343c; MCL 38.1404a. Choosing Your Retirement Plan (R2053C), Rev. 9/24, pp. 5-12. Last reviewed .