PERAC Memo #5 - 2026: COLA Notice
COLA Notice
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PERAC has announced the 2026 COLA rate of 2.8%, based on the Social Security Administration's CPI-W increase for the prior year. Pursuant to G.L. c. 32, § 103(c), retirement boards may vote to grant a COLA effective July 1, 2026. Under § 103(i), a board may vote to increase the COLA up to 3.0% with proper notice to the legislative body, but this must occur before June 30, 2026. Every board must notify PERAC through PROSPER within 30 days of their decision, whether or not they grant a COLA.
Full Text
Memorandum PERAC Memo #5: COLA Notice Date: 01/12/2026 Referenced Sources: PERAC Website PERAC Memo #05 2026
To All Retirement Boards: TO: All Retirement Boards
FROM: Bill Keefe, Executive Director
RE: COLA Notice
DATE: January 12, 2026
The Public Employee Retirement Administration Commission (PERAC) is providing this notice regarding the COLA Report required by Chapter 17, Section 8(c) of the Acts of 1997.
Under the statute, PERAC reports to the General Court the computation of the increase in the United States Consumer Price Index in the previous year by the Commissioner of Social Security. Any such increase is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index is used annually to adjust benefits paid to Social Security retirees and beneficiaries.
The Social Security Administration has announced that the latest Cost of Living Adjustment (COLA) is 2.8%.
The COLA, which any such system may grant pursuant to Chapter 32, Section 103(c) and effective July 1, 2026, will thus be 2.8%. Pursuant to Section 103(i), a Retirement Board, with proper notice to the legislative body, may elect to increase this percentage up to 3.0%, at a duly called meeting. By statute, this process should be completed prior to June 30, 2026.
Each Retirement Board making a decision whether or not to grant a COLA must notify the Commission of that decision through PROSPER within 30 days.