As a retiree of the New York State and Local Employees' Retirement System, you will receive a cost-of-living adjustment, or COLA, that will permanently increase your pension benefit if you meet the eligibility requirements. Once you become eligible and COLA payments begin, they will continue automatically and increase each September.

Q: Who is eligible to receive COLAs?

A: To begin receiving COLA payments, you must be:

• Age 62 or older and retired for five or more years;
• Age 55 or older and retired for 10 or more years;
• A disability retiree for five years;
• The spouse of a deceased retiree receiving a lifetime benefit under an option elected by the retiree at retirement. An eligible spouse is entitled to half the COLA amount that would have been paid to the retiree when the retiree would have met the eligibility criteria; or
• A beneficiary receiving the accidental death benefit for five or more years on behalf of a deceased system member.

If you are eligible for COLAs, you will receive a letter indicating how much you will be receiving prior to your Sept. 30 pension payment. Those who become eligible after September will begin receiving the COLA in the month after they first become eligible.

Q: How is the COLA calculated?

A: COLA is at least 1 percent, but not more than 3 percent, of the first $18,000 of your annual Single Life Allowance amount, even if this is not the option you choose when you retire. If your Single Life Allowance is less than $18,000 annually, the calculation is based on the actual amount.

The COLA percentage equals 50 percent of the annual rate of inflation, measured at the end of the state's fiscal year, March 31.

Q: Why is the Single Life Allowance option used?

A: When you retire, you must choose how you want your benefit paid. The Single Life Allowance option provides the highest pension. However, under the Single Life Allowance no payments are made to beneficiaries after you die.

All of the other options reduce your monthly benefit, in exchange for possibly providing for your beneficiary upon your death. Since this option offers the highest benefit, calculating your COLA as if you had chosen the Single Life Allowance guarantees you the highest amount possible.

Q: How much will the September 2009 COLA be?

A: The September COLA will equal 1.0 percent, up to a maximum annual increase of $180, or $15 per month before taxes. Since the rate of inflation for the period March 2008 through March 2009 was below zero, this year's COLA is the minimum increase.

Q: How can I get more information?

A: To learn more about COLA, go to www.osc.state.ny.us/retire/retirees/cost_of_living_adjustment.htm. You can also contact our Call Center toll-free at 866-805-0990 or 518-474-7736 in Capital District area. You will be asked to enter your Social Security number and date of birth.