Updated October 30, 2026. Quick answer: The PSRS/PEERS Board of Trustees approved a 2% cost-of-living adjustment effective January 1, 2027, announced October 29, 2026. The January 2026 COLA was also 2%. The board votes each year within Missouri law, which allows at most 5% a year and at most 80% of the original monthly benefit over a lifetime.
More on public pension retirement ages and eligibility: the Missouri PSRS and PEERS retirement age and eligibility rules.
The 2027 COLA
PSRS/PEERS announced on October 29, 2026 that the board “has approved a 2% cost-of-living adjustment (COLA) for eligible benefit recipients, effective Jan. 1, 2027.” The announcement explains how it was set: “According to Board policy, if CPI-U increases between 2% and 5%, a 2% COLA may be granted.”
How the board sets the COLA
PSRS says: “Each year, the PSRS/PEERS Board of Trustees votes on the setting of a Cost-of-Living Adjustment (COLA) effective the following January.” “Current Missouri law states that COLAs cannot exceed 5% per year and the dollar amount of the COLAs in your lifetime cannot exceed 80% of your original monthly retirement benefit.” The statute for PSRS (section 169.070) says: “If the cost of living increases less than five percent, the board of trustees may determine the percentage of increase to be made in retirement allowances, but at no time can the increase exceed five percent per year.” The board’s regulation fixes the measuring period: “A PSRS/PEERS regulation requires that the time period for the CPI-U calculation used in the determination of a COLA be from June to June.”
PEERS follows the same board policy but starts later: “may receive cost-of-living adjustments (COLAs) on monthly benefits beginning the fourth January following their retirement date.”
Where 2027 stands
The 2027 PSRS/PEERS COLA is set at 2%, effective January 1, 2027, and this page changes only if the board revises it. The 2026 COLA was also 2%.
A worked example
As a computed illustration (not a source figure), a retiree with a monthly benefit of $2,000 (invented, for the computation) would see a 2% increase of $40 (computed) a month from January 2027.
What this page does not cover
A COLA applies only once a retiree is eligible: the waiting period differs between PSRS and PEERS. The PEERS wait is quoted above; the PSRS COLA page says PSRS retirees “may receive cost-of-living adjustments (COLAs) on monthly benefits beginning the second January following their retirement date.” The board’s lifetime limit of 80% of the original benefit can also stop further COLAs, so check your own statement.
Common mistakes
- Assuming a PEERS retiree gets the January 2027 COLA at once. PEERS retirees wait until the fourth January after retirement.
- Expecting a 5% COLA. The board granted 2% because the CPI-U rose between 2% and 5%.
- Forgetting the lifetime cap of 80% of the original monthly benefit.
Related: Missouri PSRS/PEERS retirement decisions, how public pension decisions work, and whether Missouri taxes pensions.
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Answer againSources
- PSRS/PEERS, Coming in January: 2% COLA for Eligible Benefit Recipients: www.psrs-peers.org
- PSRS/PEERS, PSRS: COLA Information: www.psrs-peers.org
- Missouri Revisor of Statutes, RSMo 169.070 (PSRS retirement allowances): revisor.mo.gov
- PSRS/PEERS, October Board Meeting Summary: www.psrs-peers.org
- PSRS/PEERS, PEERS: COLA Information: www.psrs-peers.org
- Related official page (not quoted): Missouri Revised Statutes, Chapter 169, teachers and public school retirement: revisor.mo.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.