Chapters

00:00 Introduction to COLA for Mississippi PERS Retirees

01:35 Understanding the Full Fiscal Year Rule

05:14 Eligibility for COLA Payments and Next Steps

Transcript

Hi everyone, I'm Ryan Early, host of the PERS Pro YouTube channel. If you are a Mississippi PERS retiree, or you will be soon, you're probably wondering, or have asked yourself, when am I eligible to receive the COLA or 13th check? Today, we are answering that question by covering the critical full fiscal year rule.

Before we jump in, make sure you hit that subscribe button and ring the notification bell so you don't miss future videos where we help you understand how COLA is calculated, the decision to be paid COLA monthly vs. annually, when the first COLA payment is made, and more. Our goal with this channel is to provide you with short, digestible videos every day that are relevant to PERS members to help you gain financial clarity and financial confidence.

Disclaimer this video is for educational and informational purposes only. Neither the host nor this YouTube channel are officially affiliated with, endorsed by, or sponsored by the Mississippi Public Employees Retirement System. Always consult directly with a Mississippi PERS representative, financial advisor, accountant, and or legal professional before making any decisions regarding your unique personal situation.

First, let's quickly define what a COLA is for those who might be new to this. A COLA, or cost of living adjustment, is an increase in retirement benefits designed to help retirees keep pace with inflation. Essentially, it helps ensure your purchasing power doesn't erode over time due to rising costs. If you want to know more about why this is so powerful, check out our earlier video titled, What is the cost of living adjustment, (COLA), and Why Does It Matter to Mississippi PERS Retirees?

The Mississippi PERS COLA is applied annually on July 1st. However, not everyone receiving a PERS benefit automatically gets a COLA. To be eligible for a COLA on July 1st of any given year, you must have received benefit payments for a complete fiscal year prior to July 1st. Notice I didn't say partial or calendar year. And note that Mississippi and PERS fiscal year runs from July 1st to June 30th.

Using this graphic as an example, had you been looking at a COLA to be applied on July 1st, 2024, you must have received retirement benefit payments for all 12 months of the fiscal year that span July 1st, 2023 through June 30th, 2024. If you had retired partway through that fiscal year, let's say August 1st, 2023, you would have had to have wait until you completed a full 12 months of benefit payments before you became eligible for the COLA in the following year on July 1st. In that case, had you retired August 1st, 2023, you would have had to wait 23 months to be eligible for a COLA payment.

This is such a common point of confusion, so let's use the current school year as an example. Suppose you are retiring December 31, 2025, meaning January 1, 2026 retirement date, then you wouldn't have received retirement benefits for the entire fiscal year ending June 30, 2026. Therefore, you will not be eligible for the COLA on July 1, 2026. Your first COLA would be applied on July 1, 2027 and will not be paid until December 2027 if you choose the annual payment method.

If you're still unsure about your specific COLA fiscal year eligibility, don't hesitate to contact Mississippi PERS directly. Their staff can provide personalized guidance based on your individual record.

Well, that wraps up the major eligibility hurdle for the COLA, the full fiscal year rule. But remember, there's more to the COLA story. Watch our next episode titled Mississippi PERS COLA. Are you eligible for simple or compound rate, where we break down the critical ages and tiers that determine whether you're eligible to receive a simple cola rate or a compound cola rate in a given fiscal year.

If you have a follow-up question about COLA, PERS, or anything else related to personal finance that impacts PERS members, please visit our website at PERSpro.ms and submit your question for a future episode. If you found this video helpful, can thank me by simply liking the video and sharing it with other PERS members who might also benefit from it. Thank you for your valuable public service to the state of Mississippi. We'll see you next time.