Updated October 30, 2026. Quick answer: Arizona Corrections Officer Retirement Plan (CORP) increases are based on the Phoenix-Mesa consumer price index and capped at 2%. For July 2026 the PSPRS notice, which covers Tier 1 and 2 retirees and beneficiaries, gave most of them 2%, in the payment scheduled for July 31, 2026. The July 2027 increase is not set yet, because it depends on the 2026 calendar year price change.
The rule
The PSPRS annual report says increases “will be determined based on the Consumer Price Index (CPI) for the metropolitan Phoenix-Mesa area for the calendar year prior to each July payout and is capped at 2%.” The PSPRS notice adds: “Capped at 2 percent annually, retiree and survivor benefit increases are controlled by ballot propositions 124 and 125.”
Who gets it and who waits
New retirees are prorated: “For retirees in their first year of retirement (retired on/after July 1 of the prior fiscal year), the increase is prorated based on the date of retirement.” Tier 3 defined benefit members face an added test: “The increase will be payable after 7 years of retirement, or at age 60, whichever is first, and will be determined based on the funding level of the CORP.” The handbook sets the Tier 3 cap by funding level in a table, so check it against your own tier. This page covers the defined benefit plan; the defined contribution plan is not covered.
The 2026 increase
PSPRS announced the July 2026 increase in a notice dated June 10, 2026: “For most retirees and beneficiaries, the increase will amount to a 2 percent cost-of-living-adjustment.” “These increases will be reflected in the benefit payment scheduled to be distributed July 31, 2026.” The annual report separately refers to “higher average annual benefit payments from the 2.0% permanent benefit increase.” without tying it to a month.
Where 2027 stands
The July 2027 increase is not set yet: it depends on the Phoenix-Mesa consumer price index for calendar year 2026, and this page updates when PSPRS publishes its notice.
Two gaps to know about: the June 2026 notice covers the Tier 1 and 2 plans generally and does not print a separate Tier 3 CORP figure, and the Arizona statute text was not among the sources read.
Common mistakes
- Assuming a guaranteed 2%. The rule says the increase is capped at 2% and follows the price index.
- Expecting a full increase in your first year of retirement. First year retirees are prorated by retirement date.
- Assuming Tier 3 members get the Tier 1 and 2 increase right away. Tier 3 requires 7 years of retirement or age 60, and the funding level sets the cap.
Related: Arizona CORP retirement decisions, how public pension decisions work, and whether Arizona taxes pensions.
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Answer againSources
- Public Safety Personnel Retirement System, PSPRS FY2025 Annual Comprehensive Financial Report: www.psprs.com
- Public Safety Personnel Retirement System, Cost of living adjustment (COLA) for July 1, 2026: www.psprs.com
- Public Safety Personnel Retirement System, CORP Member Handbook: www.psprs.com
- 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.