Updated October 30, 2026. Quick answer: Minnesota law sets the MSRS General Plan post-retirement increase at 1.75% each January 1, so the January 1, 2027 increase is set at 1.75%, the same as 2026. Minnesota Statutes section 356.415 sets the rate; no CPI or board vote is involved. MSRS says it notifies recipients in December of the January increase. Recipients who have received an annuity or benefit for at least one full month but fewer than 12 get a prorated share.
More on public pension retirement ages and eligibility: the Minnesota MSRS General Plan retirement age and eligibility rules.
The rule set by statute
Minnesota Statutes section 356.415 says recipients “are entitled to an annual postretirement adjustment, effective as of each January 1, as follows:” “effective January 1, 2026, and thereafter, a postretirement increase of 1.75 percent must be applied each year to the amount of the monthly annuity or benefit of each annuitant or benefit recipient”. The statute applies to each recipient “who has been receiving an annuity or a benefit for at least 12 full months as of the June 30 of the calendar year immediately before the adjustment”.
MSRS’s page confirms: “Each January, eligible MSRS benefit recipients receive an increase in their monthly payment amount. This benefit increase amount is established by Minnesota state law.”
Proration and declining the increase
For newer retirees, the MSRS page says: “The increase is prorated the first year after retirement and is based on the number of full months you were retired during the previous fiscal year, which ends June 30.” The statute sets the share at “an annual postretirement increase of 1/12 of 1.75 percent for each month that the person has been receiving an annuity or benefit”. for those retired at least one full month but fewer than 12. The statute adds: “An increase in annuity or benefit payments under this subdivision must be made automatically unless written notice is filed by the annuitant or benefit recipient with the executive director of the Minnesota State Retirement System requesting that the increase not be made.”
Which plans are covered
The 1.75% rate applies to the General plan, the Legislators plan and the Unclassified program; the MSRS page also lists Military Affairs, Transportation Pilots and State Fire Marshals under General. Correctional, Judges and State Patrol have separate rates on the MSRS page, so this page does not apply to them.
Where 2027 stands
The January 1, 2027 increase is set at 1.75% by Minnesota Statutes section 356.415, which fixes that rate from January 1, 2026 and thereafter; MSRS has not posted a separate 2027 notice yet.
MSRS states: “MSRS will send you notification in December of the post-retirement benefit increase that will occur in January.” The page as read lists 1.75% effective 1/1/2026 and shows no 2027 notice yet. The 2027 rate rests on the statute’s wording, not on an MSRS announcement, and the sources read do not print earlier years’ General Plan rates.
A worked example
As a computed illustration (not a source figure), a General Plan retiree with a full 12 months of benefits and a monthly benefit of $2,000 (invented, for the computation) would see a 1.75% increase of $35 (computed) a month.
Common mistakes
- Expecting a CPI-based figure. For the General Plan the statute fixes the rate, so there is no annual vote or index calculation.
- Applying the General Plan rate to Correctional, Judges or State Patrol retirees. The MSRS page lists separate rates for them.
- Expecting the full increase in the first year of retirement. The increase is prorated by the full months retired before the prior June 30.
Related: Minnesota MSRS retirement decisions, how public pension decisions work, and whether Minnesota taxes pensions.
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Answer againSources
- Office of the Revisor of Statutes, Minnesota, Minnesota Statutes 2026, section 356.415 Postretirement Adjustments; Statewide Retirement Plans: www.revisor.mn.gov
- Minnesota State Retirement System, Post-Retirement Benefit Increases: www.mnretire.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.