Updated October 30, 2026. Quick answer: The New York State and Local Retirement System COLA for September 2026 is 1.7%. By state law it is 50% of the rate of inflation at the end of the State fiscal year, March 31, rounded up to the nearest tenth, never less than 1% or more than 3%, and applied to the first $18,000 of the annual pension. The September 2027 COLA is not set yet.
More on public pension retirement ages and eligibility: the NYSLRS retirement age and eligibility rules for Tier 6.
How the NYSLRS COLA works
NYSLRS says: “In accordance with State law, the annual COLA is 50 percent of the rate of inflation as determined by the Consumer Price Index at the end of the State fiscal year, March 31.” “The COLA percentage is rounded up to the nearest tenth and cannot be less than 1 percent or more than 3 percent annually.” “The percentage is applied to a maximum of $18,000 of your annual pension benefit as if you had chosen the Single Life Allowance pension payment option, even if you selected a different option at retirement.” “Afterward, you receive a COLA increase each year beginning with your end-of-September pension payment.”
Who qualifies
For service retirees who were non-uniformed employees, NYSLRS says: “At least age 62 and retired for at least five years.” For uniformed employees, it states: “you must be: At least age 55 and retired for at least ten years. OR At least age 62 and retired for at least five years.”
The September 2026 COLA and recent years
NYSLRS says: “This year’s COLA beginning September 2026 is 1.7 percent”. Its table of recent years:
| Effective September of | COLA percentage | Maximum monthly increase |
|---|---|---|
| 2026 | 1.7% | $25.50 |
| 2025 | 1.2% | $18.00 |
| 2024 | 1.8% | $27.00 |
| 2023 | 2.5% | $37.50 |
| 2022 | 3.0% | $45.00 |
Each maximum is the COLA percentage on $18,000 divided by 12. For 2026 that is 1.7% of $18,000, which is $306 (computed) a year, or $25.50 (computed) a month.
Where 2027 stands
The September 2027 NYSLRS COLA is not set: it is 50% of the inflation rate at March 31, 2027, so the figure cannot exist before then, and this page updates when NYSLRS publishes it.
What this page does not cover
The state law text itself was not read for this page, so the rule rests on the NYSLRS COLA page, which says it applies in accordance with State law. For a retiree whose annual pension is below $18,000, NYSLRS says the percentage is applied to the benefit amount and any prior years’ COLA increases. The NYSLRS page also has disability and beneficiary rules.
Common mistakes
- Applying the COLA percentage to the whole pension. It applies to a maximum of $18,000 a year.
- Expecting a figure before April 2027, when the March 31 inflation rate is known.
- Assuming the single life allowance rule only matters if you chose it. NYSLRS applies the percentage as if you had.
Related: NYSLRS retirement decisions, how public pension decisions work, and whether New York taxes pensions.
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Answer againSources
- Office of the New York State Comptroller, NYSLRS, Cost-of-Living Adjustment (NYSLRS retirees page): www.osc.ny.gov
- Related official page (not quoted): Office of the State Comptroller, retirement: www.osc.ny.gov
- Related official page (not quoted): Office of the State Comptroller, retirees: www.osc.ny.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.