Cost of Living Adjustments

Social Security has announced that they will be granting a cost of living increase of 2.5% for 2025. The investment performance for the preceding fiscal year is 11.5%. Based on the statutes governing Cost of Living Adjustments (COLA) for CTRB members, the Connecticut Teachers’ Retirement Board will be granting COLA as follows.

The Connecticut Teachers’ Retirement Board provides for an annual cost of living adjustment (COLA) once a member has been retired for at least a minimum of nine months.  COLA increases are paid in either January or July depending on the member's effective date of retirement.  The annual COLA date for members retiring November through April is January and the annual COLA date for members retiring May through October is July.

For members who retired prior to September, 1992 and receive their annual cost of living adjustment in January (not July) will receive an increase based on the National Consumer Price Index (CPI) for the twelve-month period ending on November 30th of the preceding year. Members who retired prior to September, 1992 and who receive their annual cost of living adjustment in July will receive an increase based on the National Consumer Price Index (CPI) for the twelve-month period ending on May 31st of the preceding year. The COLA increase ranges from a minimum of 3% to a maximum of 5% annually. Information regarding the CPI can be found on the U.S. Bureau of Labor Statistics website CPI Home : U.S. Bureau of Labor Statistics (bls.gov)

For members who retired on or after September 1, 1992 and joined the Teachers' Retirement System prior to July 1, 2007, the COLA is calculated by using the cost of living adjustment granted by the Social Security Administration for the applicable year and the investment performance of the retirement fund for the preceding fiscal year, subject to a maximum of 6%. If the investment performance of the retirement fund for the preceding fiscal year is less than 6.9%, the cost of living adjustment will be capped at 1.5%. Information regarding pension fund performance is available on the Office of the Treasurer’s (OTT) website Pension Fund Performance (ct.gov) and Combined Investment Funds Comprehensive Annual Financial Report (CAFR) (ct.gov)

For members who join the Teachers' Retirement System on or after July 1, 2007, the cost of living adjustment is based on the Social Security cost of living and the investment performance of the retirement fund for the prior fiscal year subject to a maximum of 5%.  If the investment performance of the retirement fund is less than 6.9%, the cost of living adjustment will be capped at 1%.  If the investment performance of the retirement fund for the prior fiscal year is between 6.9% and 9.9%, the cost of living will be capped at 3%.  If the investment performance of the retirement fund is over 9.9%, the cost of living will be capped at 5%. Information regarding pension fund performance is available on the Office of the Treasurer’s (OTT) website Pension Fund Performance (ct.gov) and Combined Investment Funds Comprehensive Annual Financial Report (CAFR) (ct.gov)

The COLA will increase a member’s taxable income.  Members may change their federal withholding tax by submitting a Federal Tax Withholding Change Form. Members may change their state withholding tax by submitting a Connecticut Tax Withholding Change Form CT-W4P.

For members who chose the extra annuity option for their Supplemental and/or Voluntary Account balance at retirement, the COLA does not apply to the annuity portion of the retirement benefit.

A history of the Cost of Living Adjustments Granted From 1978 is available on the Retired Teacher Publications page of this website.