The Maryland State Retirement Agency has announced the cost-of-living adjustment to be applied in July 2025. A retiree who has been retired at least one year as of July 1, 2024, qualifies for this year’s COLA.
This year’s cost-of-living rate is 2.949 percent. The total investment performance for the calendar year ending on December 31, 2024 (+6.69 percent), did not equal or exceed the 6.8 percent assumed rate of investment return. Therefore, the statutory rate cap for the portion of an allowance based on creditable service earned on or after July 1, 2011, is 1 percent for many payees.
State Teachers' Retirement Plan Retirees will see an increase of 2.949 percent in their gross pension payment.
State Pension Plan retirees will receive a two-part COLA that is capped as follows:
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 2.949 percent. The COLA for the portion of your benefits based on all credited service earned after July 1, 2011, will be 1 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 2026.