2026 Cost-of-Living Adjustment for Retirees in the MCPS Employees' Retirement and Pension System

Montgomery County Public Schools (MCPS) Employees’ Retirement and Pension System provides an annual cost-of-living adjustment (COLA) to your monthly pension benefit. COLAs are applied each year on January 1 and reflect the change in the Consumer Price Index (CPI).

For 2026, the CPI increased by 2.94 percent. As a result, your gross monthly pension payment will increase. The following COLA increases will be reflected in the pension payments processed by Aetna Inc., effective January 1, 2026.

Old Retirement Plan Retirees: You will see an increase of 2.94 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 credited service earned prior to July 1, 2011, is subject to a maximum increase of 3 percent, not to exceed the CPI.
• The COLA for benefits based on credited service earned after July 1, 2011, is subject to a maximum increase of 2 percent, not to exceed the CPI.

Therefore:

• The portion of your benefit based on credited service earned prior to July 1, 2011, will receive a 2.94 percent COLA.
• The portion of your benefit based on credited service earned after July 1, 2011, if applicable, will receive a 2.00 percent COLA.

Retirees who receive their core benefit from the Maryland State Retirement Agency (MSRA) will receive their COLA effective July 1, 2026, as determined by MSRA.

Please note that you may see a reduction in your net pension payment due to health insurance premium increases that take effect January 1, 2026.

If you need additional information or assistance, please contact the Employee and Retiree Service Center (ERSC) at (240) 740-8100 or email ERSC.