Eligible retirees receive an annual cost-of-living adjustment (COLA) of between 1% and 3%, based on half of the Consumer Price Index increase for the year ending March 31. This increase is calculated on the lesser of the retiree's maximum fixed retirement allowance or $18,000.

The following individuals are eligible for a COLA:

• Retirees who are at least age 62 and have been retired for at least five years;
• Retirees who are at least age 55 and have been retired for at least ten years;
• Disability retirees who have been retired for at least five years;
• Recipients of accidental death benefits who have been receiving their benefit for at least five years;
• Designated annuitants who are a surviving spouse of a member who died prior to 1980, and who were entitled to a lump-sum benefit, but elected a lifetime annuity instead; and
• Surviving spouses who are receiving a joint and survivor benefit, whose spouse, if alive, would have received a COLA benefit. (Note: Such individuals are eligible for half the COLA amount their spouse would have received.)