Cost of Living Adjustment

You are eligible to receive a cost-of-living adjustment (COLA) in the second year of retirement. COLAs may only be granted by the Massachusetts Legislature, not the MTRS and are not guaranteed. In recent years, the maximum increase has been $360 per year ($30 per month). By law, the annual COLA is equal to the increase in the Consumer Price Index (CPI) or 3%, whichever is less. Currently, a COLA is granted only on the first $12,000 of your retirement allowance.