Updated October 30, 2026. Quick answer: Portland’s Fire and Police Disability and Retirement (FPDR) Board of Trustees reviews the FPDR Two benefit adjustment every year for a July 1 effective date, and the City Charter caps it at the rate Oregon PERS applies to police and fire retirees, which the Board’s staff memo puts at 2% at present. On March 17, 2026 the Board approved 2% for July 1, 2026. FPDR One pensions follow active pay instead. No 2027 adjustment has been decided.
The rule
The FPDR administrative rule says: “Benefits adjusted pursuant to Section 5-312 (Benefit Adjustments) of the Plan will be reviewed annually by the Board of Trustees for adjustment effective July 1 of each year to reflect changes in the cost of living.” The cap: “The percentage rate of change shall not exceed that applied to retirement benefits payable to police officers and fire fighters covered under the Public Employees Retirement System of the State of Oregon (PERS).” Eligibility: “A Member’s benefits will be adjusted on July 1 of any given year only if the Member separates from service on or before June 30 of that year.”
Why 2% is the ceiling
The Board’s staff memo describes the limit: “any FPDR Two pension COLAs, subject to the limitation that “the percentage rate of change shall not exceed the percentage rate applied to retirement benefits payable to police and fire employees by the Public Employees Retirement System of the State of Oregon””. It continues: “the City Attorney’s Office has interpreted the Charter language to mean the FPDR Board may award up to the highest rate provided to any public safety PERS retiree, which is currently 2%.” At the March 2026 meeting the minutes record: “Let me pause and remind everyone why two percent is the maximum. City charter says the COLA awarded shall “not exceed the percentage rate applied to retirement benefits payable to police and fire employees by PERS”.”
The 2026 vote
The March 17, 2026 minutes say: “Motion by Trustee Kramer that was seconded by Trustee MacLowry and unanimously passed (4-0) to approve a 2% benefit adjustment on July 1, 2026 for FPDR 2 Retirees.” The Summer 2024 newsletter shows the same pattern: “At its March meeting, the FPDR Board unanimously voted to award the maximum possible COLA of 2% to FPDR Two members and beneficiaries, effective with the July benefit payable on August 1.”
When the Board decides
The January 2026 minutes preview the schedule: “Director Hutchison: Thank you for that. just next board meeting is March 17th, and we’ll discuss the FPDR two benefit adjustments. Then on May 26th, we’ll follow up on the benefit adjustment if needed”.
What the documents do not say
The City Charter text was not archived, so the charter limit is taken from the rule and from the memo and minutes that quote it. The FPDR One percentage for 2026 reads differently in the January and March minutes, so none is stated here, and the 2025 FPDR Two figure was not archived.
Where 2027 stands
No 2027 FPDR Two adjustment is set: the Board decides it in the spring, and no 2026 document shows a 2027 decision.
Common mistakes
- Expecting an automatic index-linked COLA. FPDR Two is a Board decision each year, within the cap.
- Applying the FPDR Two vote to FPDR One pensions. Those follow active first-class pay.
- Counting on a July 1 adjustment after leaving service in July. A member must separate on or before June 30 of that year.
Related: Portland FPDR retirement decisions, how public pension decisions work, and whether Oregon taxes pensions.
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Answer againSources
- Portland FPDR Board of Trustees, FPD-5.04 Retirement Benefits and Appeals Process (administrative rule 5.4.05 Benefit Adjustments): www.portland.gov
- Portland FPDR, FPDR Board of Trustees materials, March 17, 2026 (FPDR Two Pension COLA memo): efiles.portlandoregon.gov
- Portland FPDR, FPDR Board of Trustees regular meeting minutes, March 17, 2026: efiles.portlandoregon.gov
- Portland FPDR, FPDR FUNDamentals newsletter, Summer 2024: efiles.portlandoregon.gov
- Portland FPDR, FPDR Board of Trustees regular meeting minutes, January 27, 2026: efiles.portlandoregon.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.