2018 Cost-of-Living Adjustment
Each January 1, Montgomery County Public Schools (MCPS) Employees’ Retirement and Pension System includes a provision for an annual cost-of-living adjustment (COLA). The annual COLA is applied according to the yearly Consumer Price Index (CPI). This year’s CPI totals 2.31 percent.
MCPS Retirement Plan Members
Members of the MCPS Retirement Plan (the old retirement plan) will see an increase of 2.31 percent in their gross pension payment in 2018.
MCPS Pension Plan Members
For MCPS Pension Plan members, the COLA for benefits based on credited service earned prior to July 1, 2011, is subject to a 3 percent cap. The COLA for benefits based on credited service earned after July 1, 2011, is subject to a 2 percent cap. COLAs may not exceed the CPI. Therefore, the COLA for the portion of your benefits based on credited service earned—
- prior to July 1, 2011 will be 2.31 percent, and
- on or after July 1, 2011 will be 2.00 percent.
Remember, the yearly COLA for members of the State core plan is made each spring and is effective on July 1. For additional information, please visit the Maryland State Retirement Agency website.
You may see a reduction in your net pension payment due to an increase in health insurance premiums effective January 1, 2018. Questions? Contact the Employee and Retiree Service Center (ERSC) by telephone at 301-517-8100 or via e-mail.