Montgomery County Public Schools (MCPS) Employees’ Retirement and Pension System has a plan provision to provide an annual cost-of-living adjustment (COLA) to your monthly MCPS core and supplemental pension benefits. COLAs are applicable each year on January 1 and equal the change to the Consumer Price Index (CPI).

 

This year, the CPI increased by 2.25 percent. As a result, there will be a COLA increase to your gross pension payment. The following increases will be reflected in your monthly pension payments that are processed by Aetna Inc. effective January 1, 2025.

 

Old Retirement Plan Retirees 

You will see an increase of 2.25 percent in your gross pension payment. 

 

Pension Plan Retirees

According to the plan provisions of the MCPS Employees’ Retirement and Pension System, the COLA for benefits based on all credited service earned prior to July 1, 2011, will be subject to a maximum increase of 3 percent not exceeding the CPI. The COLA for benefits based on all credited service earned after July 1, 2011, will be subject to a maximum increase of 2 percent not exceeding the CPI. 

 

Therefore, the COLA for the portion of your benefits based on all credited service earned prior to July 1, 2011, will be 2.25 percent and after July 1, 2011, if any, will be 2.00 percent. 

 

The COLA for retirees who receive their core benefit from the Maryland State Retirement Agency (MSRA) will be effective July 1, 2025, and is set by MSRA.

 

Please be advised that you may see a reduction in your net pension payment, as a result of health insurance premium increases that go into effect January 1, 2025. If you need additional information or assistance, please contact the Employee and Retiree Service Center by telephone at (240) 740-8100 or via email at ERSC@mcpsmd.org.