Act 21 of 2026
Act 21 of 2026 (signed July 12, 2026, part of the FY 2026-27 budget) grants a permanent supplemental percentage increase, effective July 1, 2026, only to members who retired on or before July 1, 2001 and were receiving a monthly benefit on July 1, 2026. Members who retired after July 1, 2001, and beneficiaries and survivor annuitants of members who died before July 1, 2026, are not eligible. PSERS web page COLA (fetched 2026-11-11), 'COLA Approved for PSERS Retirees Who Retired On or Before July 1, 2001'
Act 21 of 2026 increase, by retirement date
A permanent percentage increase, effective July 1, 2026, if you were receiving a monthly benefit on July 1, 2026.
| Retired | Increase |
|---|---|
| July 2, 2000 to July 1, 2001 | 15% |
| July 2, 1999 to July 1, 2000 | 15.5% |
| July 2, 1998 to July 1, 1999 | 16% |
| July 2, 1997 to July 1, 1998 | 16.5% |
| July 2, 1996 to July 1, 1997 | 17% |
| July 2, 1995 to July 1, 1996 | 17.5% |
| July 2, 1994 to July 1, 1995 | 18% |
| July 2, 1993 to July 1, 1994 | 18.5% |
| July 2, 1992 to July 1, 1993 | 19% |
| July 2, 1991 to July 1, 1992 | 19.5% |
| July 2, 1990 to July 1, 1991 | 20% |
| July 2, 1989 to July 1, 1990 | 20.5% |
| July 2, 1988 to July 1, 1989 | 21% |
| July 2, 1987 to July 1, 1988 | 21.5% |
| July 2, 1986 to July 1, 1987 | 22% |
| July 2, 1985 to July 1, 1986 | 22.5% |
| July 2, 1984 to July 1, 1985 | 23% |
| July 2, 1983 to July 1, 1984 | 23.5% |
| July 2, 1982 to July 1, 1983 | 24% |
| On or before July 1, 1982 | 24.5% |
| After July 1, 2001 | None |
PSERS web page COLA (fetched 2026-11-11), 'COLA Approved for PSERS Retirees Who Retired On or Before July 1, 2001'
What it means if you retire now
Plan on a flat check. With no automatic COLA, PSERS's sample retiree's $2,951 a month would still be $2,951 ten years later, unless the Legislature acts. Prices usually rise over that time, so the same check buys less.
Survivors
If a member who received a COLA elected a survivor option (excluding a Customized Option designed for a specific amount), the survivor annuitant receives the appropriate percentage of the increased benefit. Historically, COLAs enacted after the member's death are not payable to the survivor annuitant. Let's Talk About PSERS Death Benefits (Mar. 2025), p. 6 What a survivor receives in the first place depends on your option; see PSERS survivor benefits.
What PSERS says
- PSERS has no automatic cost-of-living adjustment. Only the Pennsylvania Legislature can grant a COLA.Retired Member Handbook (3/2014), p. 9
- Act 21 of 2026 gave a permanent increase, effective July 1, 2026, only to members who retired on or before July 1, 2001 and were receiving a benefit on July 1, 2026: from 15% (retired July 2, 2000 to July 1, 2001) up to 24.5% (retired before July 2, 1982).PSERS web page COLA (Nov. 2026)
- The Pennsylvania Constitution bars the Legislature from granting cost-of-living increases to survivor annuitants. A survivor of a member who already received a COLA gets the appropriate share of it.Retired Member Handbook (3/2014), p. 9; Let's Talk About PSERS Death Benefits (Mar. 2025), p. 6
Questions
Does PSERS have an automatic COLA?
No. Only the Pennsylvania Legislature can grant cost-of-living adjustments for PSERS retirees; there is no automatic COLA in the sources. The Pennsylvania Constitution prohibits the Legislature from granting cost-of-living increases to survivor annuitants.
Who gets the Act 21 of 2026 increase?
Act 21 of 2026 (signed July 12, 2026, part of the FY 2026-27 budget) grants a permanent supplemental percentage increase, effective July 1, 2026, only to members who retired on or before July 1, 2001 and were receiving a monthly benefit on July 1, 2026. Members who retired after July 1, 2001, and beneficiaries and survivor annuitants of members who died before July 1, 2026, are not eligible.
How much is the Act 21 of 2026 increase?
From 15% (retired July 2, 2000 to July 1, 2001) up to 24.5% (retired on or before July 1, 1982), effective July 1, 2026.
Related: the other things that change what you take home are health premiums and federal tax.
Source: PSERS Active Member Handbook, Current pa.gov edition (PDF revised Sept. 2023). Also: Retired Member Handbook (3/2014), p. 9. Also: PSERS web page COLA. Also: Let's Talk About PSERS Death Benefits (Mar. 2025), p. 6. Last reviewed .