Updated October 30, 2026. Quick answer: The Minnesota PERA annual increase for General Plan retirees (Coordinated, Basic and MERF) was 1.75% on January 1, 2026, announced October 24, 2025. The 2027 increase is not set yet: Minnesota law ties it to the Social Security cost-of-living adjustment announced in the last quarter of 2026, with a floor of 1% and a usual cap of 1.75% (the statute lowers the cap to 1.5% if the plan’s funding falls to set levels).
More on public pension retirement ages and eligibility: the Minnesota PERA retirement age and eligibility rules for the Coordinated Plan.
How the PERA annual increase works
The General Plan increase is set by Minnesota Statutes section 356.415. “The percentage of increase shall be one percent unless the federal Social Security Administration has announced a cost-of-living adjustment pursuant to United States Code, title 42, section 415(i), in the last quarter of the preceding calendar year that is greater than one percent.” PERA’s 2025 valuation handout describes the change this way: “Post-retirement benefit increase changes to 100% of the Social Security Cost-of-Living Adjustment (minimum of 1.00%; maximum of 1.75%) effective January 1, 2026”.
PERA’s own page adds: “Annual increases for monthly benefits are determined by Minnesota Statutes. Increases are effective January 1 of each year for eligible benefit recipients.” The statute sets the time on benefits for the full increase: “has been receiving the annuity or benefit for at least 12 full months as of the June 30 of the calendar year immediately before the effective date of the increase, there is no reduction in the percentage of increase.” A recipient with at least one month but fewer than 12 full months on benefits gets a prorated increase: “the percentage of increase is multiplied by a fraction, the numerator of which is the number of months the annuity or benefit was received as of June 30 of the preceding calendar year and the denominator of which is 12”.
The 2026 increase
PERA states: “Effective January 1, 2026, the PERA annual benefit increase for eligible retirees and benefit recipients is 1.75% if you are in the Coordinated, Basic, or MERF Plan,” Its announcement is headed: “2026 Annual Increases October 24, 2025 PERA Announces 2026 Increases for Benefit Recipients”.
Where 2027 stands
The 2027 Minnesota PERA increase is not set: it follows the Social Security cost-of-living adjustment announced in the last quarter of 2026, and this page updates when PERA publishes it. PERA announced the 2026 figure on October 24, 2025, so the 2027 announcement normally follows the Social Security announcement in October.
A worked example
As a computed illustration (not a source figure), a General Plan retiree with a monthly benefit of $2,000 (invented, for the computation) would see a 1.75% increase of $35 (computed) a month.
What this page does not cover
This page covers the General Plan only. PERA’s Police and Fire and Correctional plans have different increase rules, so use PERA’s own annual increases page for those.
Common mistakes
- Treating 1.75% as guaranteed. It is the usual maximum, and the statute lowers it to 1.5% if plan funding falls to set levels; the percentage follows the Social Security COLA and is at least 1%.
- Looking for a 2027 PERA figure before the Social Security announcement.
- Applying the General Plan rule to a Police and Fire or Correctional retiree.
Related: Minnesota PERA retirement decisions, how public pension decisions work, and whether Minnesota taxes pensions.
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Answer againSources
- Office of the Revisor of Statutes, Minnesota, Minnesota Statutes section 356.415 (postretirement adjustments): www.revisor.mn.gov
- Minnesota PERA, Public Employees Retirement Association Actuarial Update (2025 valuation results): www.mnpera.org
- Minnesota PERA, Annual Increases (PERA): www.mnpera.org
- Minnesota PERA, Plan Updates news listing (PERA): www.mnpera.org
- Related official page (not quoted): Legislative Commission on Pensions and Retirement: www.lcpr.mn.gov
Read from the primary documents linked above on October 30, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the IRS itself is the right place to confirm anything consequential.