Updated October 30, 2026. Quick answer: Pennsylvania PSERS has no automatic COLA: only the General Assembly and the Governor can authorize one. The latest, in Act 21 of 2026 signed July 12, 2026, is a permanent increase of 15% to 24.5%, by retirement date, for members who retired on or before July 1, 2001 and were receiving a monthly benefit on July 1, 2026. It is effective July 1, 2026. No 2027 COLA is set.
Who can grant a PSERS COLA
The PSERS retired member newsletter says: “COLAs provided to PSERS retirees can only be authorized by the General Assembly and the Governor through the enactment of legislation.” It adds: “PSERS has no authority to increase a member’s pension that is not in the law.”
The 2026 COLA
The newsletter states who gets it: “The COLA is payable only to PSERS members who retired on or before July 1, 2001 (Pre Act 9 of 2001 benefit enhancements) and who were receiving a monthly benefit payment on July 1, 2026.” It reports the law: “signed into law by Gov. Josh Shapiro on July 12, 2026, as part of Act 21 of 2026.” On size it says: “This COLA increased benefits between 15% and 24.5%, depending on the member’s retirement date.”
Who is left out
The newsletter states: “Members with a retirement date after July 1, 2001, and beneficiaries and survivor annuitants of members who passed prior to July 1, 2026, are not eligible.” It confirms: “The 2026 COLA only provides an increase to members who retired on or before July 1, 2001.”
Where 2027 stands
No 2027 PSERS COLA is set or scheduled: only the General Assembly and the Governor can authorize one, and this page updates if a bill is enacted. The PSERS pages read mention no 2027 increase.
Common mistakes
- Expecting an automatic yearly increase. PSERS says only the General Assembly and the Governor can authorize a COLA.
- Applying the 15% to 24.5% increase to someone who retired after July 1, 2001. The 2026 COLA only covers those who retired on or before that date.
- Treating the 2026 COLA as the start of a yearly pattern. Nothing in the PSERS documents read schedules another.
Related: Pennsylvania PSERS retirement decisions, how public pension decisions work, and whether Pennsylvania taxes pensions.
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- PSERS, PSERS Retired Member Newsletter Vol. 3, 2026: www.pa.gov
- Related official page (not quoted): Pennsylvania Consolidated Statutes, Title 24, Education: www.palegis.us
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.