What is the Annual Benefit Adjustment/COLA/13th Check, and when will mine start?
PERS retirees and beneficiaries who have been receiving an allowance for at least one (1) full state fiscal year are eligible to receive an Annual Benefit Adjustment (also called the 13th Check or COLA). The state’s fiscal year is July through June. The adjustment is equal to 3% of the annual retirement allowance per each full state fiscal year of retirement prior to the year in which the account-owner reaches age 55, plus 3% compounded per each full state fiscal year thereafter, beginning with the state fiscal year in which the account-owner turns age 55. Retirees may receive the adjustment in a lump sum, payable December 15th (that’s in the middle of the fiscal year for which the adjustment is calculated) or in 12 equal monthly installments July through June (that’s each month of the fiscal year for which the adjustment is calculated). The total amount of the fiscal year’s adjustment is the same no matter which payment schedule you select. Election of the monthly installment payment
