Updated October 30, 2026. Quick answer: The Vermont State Treasurer’s notice sets the Vermont Municipal Employees’ Retirement System (VMERS) COLA effective January 1, 2027 at 2.00% for Group A and 2.15% for Groups B, C and D. VMERS pays one-half of the CPI-U change for the preceding June 30, which the notice puts at 4.30%, capped at 2% for Group A and 3% for Groups B, C and D. The January 1, 2026 COLA was based on a 3.00% change.
The January 1, 2027 notice
The Treasurer’s notice states: “The change in the Northeast Region CPI-U for the year ending June 30, 2026, is 4.30%. Therefore, the COLAs effective January 1, 2027, for eligible retirees and beneficiaries will be as follows by System and Group.”
The VMERS rule
The VMERS page says: “The COLA is based on one-half of the change in the Consumer Price Index (CPI) of the preceding June 30 and is automatically applied to the January check which is payable January 31.” “The maximum COLA for group A members is 2% each year. The maximum COLA for group B,C and D members is 3% each year.”
Early retirees and a negative CPI
For early retirees the page says: “Retirees who retire under an early retirement become eligible for their first COLA on the first day of January following attainment of normal retirement age and receipt of twelve pension checks.” The statute adds: “No adjustment shall be made pursuant to this section in January if the Consumer Price Index as of the previous June 30th is a negative rate.”
The arithmetic
One-half of 4.30% is 2.15%. That is under the 3% cap for Groups B, C and D, so they get 2.15%. For Group A the 2% cap applies, so the COLA is 2.00%.
The last COLA already paid
The notice for January 1, 2026 states: “The change in the Northeast Region CPI-U for the year ending June 30, 2025, is 3.00%.”
What the documents do not say
The 2027 notice carries no printed issue date.
Where 2027 stands
The 2027 VMERS COLA is set: the Treasurer’s notice lists the January 1, 2027 figures, and this page updates only if the Treasurer corrects the notice.
Common mistakes
- Expecting the full 4.30%. VMERS pays one-half of the CPI-U change, subject to the cap for the group.
- Applying the Group B, C and D cap to Group A. Group A is capped at 2%.
- Looking for a COLA when the CPI is negative. The statute makes no adjustment in that case.
Related: Vermont VMERS retirement decisions, how public pension decisions work, and whether Vermont taxes pensions.
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Answer againSources
- Vermont Office of the State Treasurer, COLA Notice effective January 1, 2027: www.vermonttreasurer.gov
- Vermont Office of the State Treasurer, VMERS Group Plans (Group Plan Descriptions): www.vermonttreasurer.gov
- Vermont General Assembly, 24 V.S.A. 5067 Postretirement adjustments to retirement allowances: legislature.vermont.gov
- Vermont Office of the State Treasurer, COLA Notice effective January 1, 2026: www.vermonttreasurer.gov
- Related official page (not quoted): IRS Tax Topic 410, Pensions and annuities: www.irs.gov
- Related official page (not quoted): IRS Tax Topic 411, Pensions: the General Rule and the Simplified Method: www.irs.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.