Updated October 30, 2026. Quick answer: Georgia PSERS retirees received a 2.8% cost of living increase with the July 2026 payment, which ERS labels fiscal year 2027. It went to those who receive a monthly benefit as of the July 1 payment date. PSERS has no automatic COLA: the Board of Trustees may consider one each year, and the next one, which would be paid in July 2027, is not set yet.
How a PSERS COLA is granted
The PSERS Handbook says: “Each year, the Board of Trustees may consider the grant of a Cost of Living Adjustment (COLA) for retirees. The decision will be based on the long term financial soundness of the pension system. COLAs are not guaranteed, and you should not base your financial decisions on the possibility of a COLA until a COLA has been announced.” The handbook is marked as updated in July 2019, so this page cites it only for that discretionary rule.
The increase paid with the July 2026 payment
The ERS Post-Retirement Benefit Adjustment History page lists for PSERS: “A 2.8% Cost-of-Living Adjustment (COLA) for retirees and beneficiaries. The COLA will be paid as a 2.8% increase to those who receive a monthly benefit as of July 1, 2026.” ERS labels this fiscal year 2027, but the payment began in July 2026, so it is not a calendar 2027 increase.
The ERS worksheet for the fiscal year 2027 PSERS COLA shows how the rate was reached. It says it is “Based on ERS COLA Methodology”. and then “Inflation Rate (per SSA COLA Rate) = 2.80%”. It also shows “Rounded to nearest 0.25% = 3.25%”. and concludes: “COLA Rate = lesser of 3.25% and 2.80% = 2.80%”.
Earlier years and who is covered
The previous PSERS entry on the same page reads: “A 1.25% Cost-of-Living Adjustment (COLA) for retirees and beneficiaries. The COLA will be paid as a 1.25% increase to those who receive a monthly benefit as of July 1, 2025.” This page covers PSERS retirees and beneficiaries, such as public school employees like lunchroom, bus and maintenance staff. The Georgia ERS, TRS and LRS plans are separate systems and are not covered here.
Where 2027 stands
The next PSERS COLA, which would be paid in July 2027, is not set yet: the sources show no adjustment after the one paid with the July 2026 payment, and this page updates when the PSERS Board of Trustees grants one and ERS publishes it. The sources do not print the date of the Board vote that set the July 2026 increase, and the ERS history page is undated. The Georgia statute text was not read for this page, so the legal basis is stated only as the handbook describes it.
A worked example
As a computed illustration (not a source figure), a PSERS retiree with a monthly benefit of $2,000 (invented, for the computation) in pay for the July 2026 payment would see a 2.8% increase of $56 (computed) a month.
Common mistakes
- Treating the 2.8% as a calendar 2027 increase. ERS calls it fiscal year 2027, but it was paid with the July 2026 payment.
- Expecting a COLA every year. The handbook says COLAs are not guaranteed and the Board of Trustees may consider one each year.
- Assuming a July 2027 COLA is already decided. No adjustment after the July 2026 one appears in the ERS sources.
Related: Georgia PSERS retirement decisions, how public pension decisions work, and whether Georgia taxes pensions.
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Answer againSources
- Employees’ Retirement System of Georgia, PSERS Handbook: www.ers.ga.gov
- Employees’ Retirement System of Georgia, Post-Retirement Benefit Adjustment History: www.ers.ga.gov
- Employees’ Retirement System of Georgia, COLA Calculation FY 27 – PSERS: www.ers.ga.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.