2017 Cost-of-Living Adjustment News
MCPS Retirement and Pension System
On January 1, 2017, retirees or their surviving beneficiaries of the Montgomery County Public Schools (MCPS) Retirement and Pension System will receive a cost-of-living adjustment (COLA). The amount of the adjustment will depend on your retirement date.
- If you retired before January 1, 2016, you will receive a COLA increase of 0.58 percent.
- If you retired on or after January 1, 2016, you will receive a COLA increase of 1.22 percent.
Annual cost-of-living adjustments (COLA) are equal to changes in the Consumer Price Index (CPI). Last year, there was a negative CPI of 0.64 percent, but your gross pension benefit amount did not change. This is because the Board of Education had earlier amended the MCPS Employees’ Retirement and Pension Plan to mitigate the impact of a negative change in the CPI. The negative COLA was allowed to accumulate from year-to-year to offset against future positive adjustments.
If you retired before January 1, 2016, you must first offset last year’s negative COLA of 0.64 percent against this year’s positive COLA of 1.22 percent. That leaves an increase of 0.58 percent. If you retired on or after January 1, 2016, you will receive the full increase of 1.22 percent because you did not encounter last year’s negative COLA.
Maryland State Retirement and Pension System
The COLA for retirees who receive their core benefit from the Maryland State Retirement Agency (MSRA) will be effective July 1, 2017, and is set by MSRA.