2024 Cost-of-Living Adjustment for Retirees in the State Teachers’ Pension Plan and Retirement Plans

The Maryland State Retirement Agency has announced the cost-of-living adjustment to be applied in July 2024. A retiree who has been retired at least one year as of July 1, 2024, qualifies for this year’s COLA. This year’s COLA rate is 4.116 percent.

State Teachers' Retirement Plan Retirees will see an increase of 4.116 percent in their gross pension payment.

State Pension Plan retirees will receive a two-part COLA that is capped as follows:

• COLA capped at 3 percent on the portion of your benefit earned through June 30, 2011, and
• COLA capped at 2.5 percent or 1 percent on the portion of your benefit earned on or after July 1, 2011.

The cap is 2.5 percent in years when the system’s investment fund earns or exceeds its assumed actuarial rate of return. The cap is 1 percent in years when the assumed actuarial rate is not met. Therefore, the COLA for the portion of your benefits based on credited service earned before July 1, 2011, will be 3 percent. The COLA for the portion of your benefits based on all credited service earned after July 1, 2011, will be 2.5 percent.

The increased monthly benefit will be shown on the Automatic Deposit Advice mailed to retirees' homes on July 31. Those who retired after July 2024 (August 2024 or later) will receive their first COLA increase in July 2025.