2025 COLA Information

Eligible retirees of the Employees’ Retirement System of Rhode Island (ERSRI) and Municipal Employees’ Retirement System (MERS) employers will receive a Cost-of-Living Adjustment (COLA) in 2025. The COLA rate for a given year is calculated using 50% of the previous five-year average investment return minus 5.00%, and 50% of inflation as measured by the Consumer Price Index for All Urban Consumers, then applied to a portion of your pension benefit as determined by Rhode Island General Law. 

Using this formula, the calculated COLA for 2025 is 2.89%, and 0.72% for those eligible to receive a 1/4th COLA.

Most eligible retirees receive their COLA the month following their 3-year retirement anniversary. However, for members who reach their COLA eligibility based on their Social Security Normal Retirement Age (SSNRA) or age - when this date is later than the 3-year anniversary - their COLA month will be the month following their SSNRA date or birthdate.

Note that for members with retirement dates in December who reach COLA eligibility on their 3-year retirement anniversary, COLA adjustments are paid the following January (2026). (Eligible retirees receive the 2024 COLA of 2.84% or 0.71% in January 2025.)

Select your plan below for detailed information about 2025 COLA.

2025 COLA by Plan

  • State Employees or Teachers who retired on or before 6/30/2012 are eligible for 2025 COLA*
    • These retirees will receive 2.89% COLA on the first $30,622 of their benefit.
  • State Employees or Teachers who retired on or after 7/1/2012 are eligible for COLA 3 years after retirement or upon reaching Social Security Normal Retirement Age (SSNRA), whichever is later.
    • Those with retirement dates between 7/1/2012 and 6/30/2015 will receive 0.72% COLA on the first $36,746 of their benefit.
    • Those with retirement dates on or after 7/1/2015 will receive 0.72% COLA on the first $30,622 of their benefit.
  • Most eligible members receive their COLA the month following their 3-year retirement anniversary. However, for members who reach their COLA eligibility based on their Social Security Normal Retirement Age (SSNRA) - when this date is later than the 3-year anniversary - their COLA month will be the month following their SSNRA date.
  • Note that for members with retirement dates in December who reach COLA eligibility on their 3-year retirement anniversary, COLA adjustments are paid the following January (2026).
  • Teachers with retirement dates of July 1st who reach COLA eligibility on their 3-year retirement anniversary, COLA adjustments are paid in July.

*with the exception of retirees who were not receiving COLA by 6/30/2012 and who have not yet reached their Social Security Normal Retirement Age (SSNRA).

  • Municipal Employees (General employees and Police & Fire employees) in plans offering COLA who retired on or before 6/30/2012 are eligible for 2025 COLA*
    • These retirees will receive 2.89% COLA on the first $30,622 of their benefit.
  • General Municipal Employees in plans offering COLA who retired on or after 7/1/2012 are eligible for COLA 3 years after retirement or reaching Social Security Normal Retirement Age (SSNRA), whichever is later.
    • Those in plans 75% or more funded as of 6/30/2024 (see list of 93 MERS units) will receive 2.89% COLA on the first $30,622 of their benefit.
    • Those in plans less than 75% funded as of 6/30/2024 with retirement dates between 7/1/2012 and 6/30/2015 will receive 0.72% COLA on the first $36,746 of their benefit.
    • Those in plans less than 75% funded as of 6/30/2024 with retirement dates on or after 7/1/2015 will receive 0.72% COLA on the first $30,622 of their benefit.
  • Police and Fire Municipal Employees in plans offering COLA who retired between 7/1/2012 and 6/30/2015 are eligible for COLA 3 years after retirement or age 55, whichever is later.
    • Those in plans 75% or more funded as of 6/30/2024 (see list of 93 MERS units) will receive 2.89% COLA on the first $30,622 of their benefit.
    • Those in plans less than 75% funded as of 6/30/2024 with retirement dates between 7/1/2012 and 6/30/2015 will receive 0.72% COLA on the first $36,746 of their benefit.
    • Those in plans less than 75% funded as of 6/30/2024 with retirement dates on or after 7/1/2015 will receive 0.72% COLA on the first $30,622 of their benefit.
  • Police and Fire Municipal Employees in plans offering COLA who retired after 7/1/2015 are eligible for COLA 3 years after retirement or age 50, whichever is later.
    • Those in plans 75% or more funded as of 6/30/2024 (see list of 93 MERS units) will receive 2.89% COLA on the first $30,622 of their benefit.
    • Those in plans less than 75% funded as of 6/30/2024 with retirement dates between 7/1/2012 and 6/30/2015 will receive 0.72% COLA on the first $36,746 of their benefit.
    • Those in plans less than 75% funded as of 6/30/2024 with retirement dates on or after 7/1/2015 will receive 0.72% COLA on the first $30,622 of their benefit.
  • Most eligible members receive their COLA the month following their 3-year retirement anniversary. However, for members who reach their COLA eligibility based on their on their AGE – either their Social Security Normal Retirement Age (SSNRA) or age 50 or 55 - when this date is later than the 3-year anniversary - their COLA month will be the month following their SSNRA or birthdate.
    • Note that for members with retirement dates in December who reach COLA eligibility on their 3-year retirement anniversary, COLA adjustments are paid the following January (2026).

*with the exception of retirees who were not receiving COLA by 6/30/2012 and who have not yet reached their Social Security Normal Retirement Age (SSNRA).

MERS Plans Providing 2.89% COLA in 2025 - 75% or More Funded
  • Retired Judges or State Police are eligible for COLA 3 years after retirement or upon reaching Social Security Normal Retirement Age (SSNRA), whichever is later. Eligible members will receive a 4-year COLA in 2025.
    • Those with retirement dates on or before 6/30/2015 will receive 2.89% COLA on the first $36,746 of their benefit.
    • Those with retirement dates on or after 7/1/2015 will receive 2.89% COLA on the first $30,622 of their benefit.
  • Most eligible retirees will receive their COLA the month following their 3-year retirement anniversary. However, for members who reached their COLA eligibility based on their Social Security Normal Retirement Age (SSNRA) - when this date is later than the 3-year anniversary - their COLA month will be the month following their SSNRA date.
    • For members with retirement dates in December who reached COLA eligibility on their 3-year retirement anniversary, COLA adjustments are paid the following January (2026).
  • Teacher Survivors’ Benefit (TSB) payees who are age 60 or over and who are receiving spousal benefits with effective dates of 12/1/2024 or earlier are eligible to receive a 2.5% COLA on their full benefit amount. TSB COLA adjustments for all eligible payees will be applied to benefits in January 2025.
  • Retired Central Falls Legacy or West Warwick Legacy Members: COLA eligibility rules and amounts are pursuant to individual plan documents.