Cost of Living Adjustments (COLAs) for retirees and DROP participants in the Employees', Police Officers and Uniformed Retirement Systems, in the amount of 3.0%, will be effective July 1, 2026.
Each year, effective July 1, retiree benefits are increased by a cost-of-living adjustment (COLA) based on the increase in the Washington-Arlington-Alexandria DC-VA-MD-WV area Consumer Price Index (CPI-U) for the twelve months ending March 31. This "automatic" COLA is equal to the CPI increase up to a maximum of 4.0%.
The CPI, as defined by the United States Bureau of Labor Statistics, is comprised of several categories within an overall 'market basket.' For more information visit: https://www.bls.gov/regions/mid-atlantic/news-release/consumerpriceindex_washingtondc.htm
Please Note:
For members who have retired or entered DROP during the current fiscal year, COLAs are prorated as shown below according to the effective dates of retirement or DROP entry:
July 1st to September 30th.............75% of the COLA amount
October 1st to December 31st ........50%
January 1st to March 31st ..............25%
After April 1st ....................................0% COLA