Updated October 30, 2026. Quick answer: Louisiana LSERS has no automatic annual COLA, and no 2027 increase is set yet. A permanent benefit increase (PBI) of up to 2% needs legislative approval and a fully funded PBI account, and it begins on the July 1 following approval. The 2026 valuation says the board does not meet the requirements to recommend a PBI at this time. The latest increase in the valuation’s history is a 1.4% PBI on July 1, 2022.
How an LSERS increase works
The 2026 actuarial valuation describes the rule: “PBIs funded by the PBI funding account shall begin on the July 1st following legislative approval and shall equal up to 2% of the current benefit up to $60,000 annually.” The account must also be large enough, as the audit states: “No PBI/COLA may be granted from the account unless the balance is sufficient to fully fund the PBI/COLA on an actuarial basis”.
Who is eligible and who is left out
The valuation lists the qualification rules, beginning with “1. A regular retiree must be at least age 62 and have received benefits for at least 2 years;” Disability retirees and beneficiaries of retirees who would have met the test are also covered. Retirees under age 62 who are regular retirees are left out of a PBI under this rule.
A separate option is open only at retirement. LSERS Fact Sheet 21 says: “Retiring members may elect to receive a self-funded, guaranteed annual 2.5% cost-of-living adjustment (COLA) by taking a lifetime actuarially reduced benefit.” The fact sheet adds that the election is permanent and irrevocable, and it reduces the monthly benefit.
The latest increase
The valuation’s history of increases from the Experience Account lists the July 1, 2022 row as “1.4% permanent benefit increase; retirees at least age 60; disabilities with no age restriction; on benefit up to $60,000 adjusted for CPI; retired for at least 1 year”. Two gaps affect a reader: the sources read do not name the act or the date that granted it, and that row’s age 60 and one year terms differ from the age 62 and two years terms in the current rule.
Where 2027 stands
No 2027 LSERS increase is set yet: the board has not recommended a permanent benefit increase to the Legislature, and this page updates when LSERS or the Legislature acts.
The valuation reports that “the final balance of $22,502,332 is below the cost of providing the permanent benefit increase defined in R.S. 11:1145.6”. and states: “Based on 2026 valuation data, the present value of a PBI granted July 1, 2027 is $27,836,008.” It concludes: “Therefore, the board does not meet the requirements under R.S. 11:1145.6 to recommend that the legislature approve a PBI at this time.”
Common mistakes
- Expecting a yearly COLA. LSERS has no automatic annual increase, and a PBI needs legislative approval.
- Assuming the 2022 increase sets the rule for the next one. The current rule requires age 62 and two years of benefits for a regular retiree.
- Confusing the self-funded 2.5% option with a free raise. It is elected at retirement in exchange for an actuarially reduced benefit.
Related: Louisiana LSERS retirement decisions, how public pension decisions work, and whether Louisiana taxes pensions.
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Answer againSources
- LSERS, Actuarial Valuation as of June 30, 2026: lsers.net
- LSERS, Financial Audit, fiscal year ended June 30, 2026: lsers.net
- LSERS, Fact Sheet 21, Annual Cost of Living Option: lsers.net
- 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.