Updated October 30, 2026. Quick answer: Ohio Police and Fire pays an annual COLA, generally included in the July pension payment, once a member has received benefits for at least one year and reached age 55 (a member who retires before 55 gets a prorated COLA at 55 after one year of benefits). The older group gets a flat three percent of the base pension; newer members get the lesser of three percent or the CPI change. The percentage applied in 2026 is not in the sources read, and the 2027 percentage is not set yet.
More on public pension retirement ages and eligibility: the Ohio Police and Fire retirement age and eligibility rules.
The COLA rule
Ohio Revised Code section 742.3716 says: “The pension or benefit shall be increased by the lesser of the following: (1) Three per cent; (2) The percentage increase, if any, in the consumer price index over the twelve-month period that ends on the thirtieth day of September of the immediately preceding year, rounded to the nearest one-tenth of one per cent.” On eligibility, it says the increase applies “once the member has received the pension or benefit for at least one year and has attained the age of fifty-five.” For earlier retirees, the service retirement guide says: “For those who retire before turning age 55, you will receive a pro-rated COLA on your 55th birthday (as long as you have been receiving benefits for one year), subject to statutory and administrative limitations.”
The fund’s COLA page says members “will receive a COLA equal to the increase, if any, of the Consumer Price Index (CPI) or three percent, whichever is less.” It also explains: “Once eligible, the annual COLA amount is calculated on a member’s base pension and does not compound annually. Generally, the new pension benefit amount is included in the July pension payment.”
Who gets a flat three percent
The service retirement guide describes the older group: “OP&F members who have 15 or more years of service credit as of July 1, 2013 and who are not receiving a benefit from OP&F, and members who are receiving a pension that became effective before July 1, 2013, will receive a COLA equal to three percent of the member’s base pension benefit.” Members with less than that service as of July 1, 2013 and later members fall under the lesser of three percent or the CPI change.
Who is left out
The member handbook says: “Members do not qualify for annual cost-of-living allowances at any time during DROP”. It also notes an exception to the age rule: “The age 55 provision for receiving a COLA does not apply to those who are receiving a permanent and total disability benefit and statutory survivors.” On DROP, Ohio Revised Code section 742.3716 says: “A member whose election to participate in the deferred retirement option plan established under section 742.43 of the Revised Code is effective prior to July 2, 2013, is eligible to receive an increase under this section while participating in the deferred retirement option plan on attaining the age of fifty-five and having participated in the plan twelve months.” “A member whose election to participate in the deferred retirement option plan is effective on or after July 2, 2013, shall not receive an increase under this section while participating in the deferred retirement option plan”. This page covers the Ohio Police and Fire Pension Fund only; the other Ohio retirement systems are separate.
Where 2027 stands
The percentage for 2027 is not set in the sources read: the rule is the lesser of three percent or the CPI change for newer members, a flat three percent for the older group, and this page updates when the fund publishes the percentage.
The percentage applied in 2026 is not printed in the fund’s documents read, so this page does not state one. The CPI is measured over the twelve months that end on September 30 of the preceding year. The COLA page also lists a current COLA interest rate of 3.0%, labeled for November 1, 2026 to October 31, 2027; the page does not explain it, and it is not stated as the COLA percentage.
A worked example
As a computed illustration (not a source figure), a member in the flat three percent group with a monthly base pension of $2,000 (invented, for the computation) would see a COLA of $60 (computed) a month, not compounded.
Common mistakes
- Assuming the same percentage for every member. The older group gets a flat three percent, while newer members get the lesser of three percent or the CPI change.
- Expecting a COLA at any time during DROP. The member handbook says members do not qualify while in DROP, but the statute makes an exception for DROP elections effective before July 2, 2013.
- Reading the 3.0% COLA interest rate on the fund’s page as the 2027 COLA. The page labels it an interest rate and does not call it the COLA percentage.
Related: Ohio Police and Fire retirement decisions, how public pension decisions work, and whether Ohio taxes pensions.
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Answer againSources
- Ohio Legislative Service Commission, Ohio Revised Code Section 742.3716, Annual increases in pension or benefits: codes.ohio.gov
- Ohio Police & Fire Pension Fund, Member’s Guide to Service Retirement: www.op-f.org
- Ohio Police & Fire Pension Fund, COLA (Cost of Living Adjustment) Information: op-f.org
- Ohio Police & Fire Pension Fund, Member Guidebook: www.op-f.org
- 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.