Montgomery County Public Schools (MCPS) Employees’ Retirement and Pension System includes a provision for an annual cost-of-living adjustment (COLA) each January 1. The annual COLA is applied according to the yearly Consumer Price Index (CPI). The CPI for 2023 will increase by 8.46 percent.
As a result, members of the Employees’ Retirement and Pension System will receive a COLA to their gross pension payments, effective January 1, 2023. The following increases will be reflected in monthly pension payments processed by Aetna Inc.
MCPS Retirement Plan Members
MCPS Retirement Plan (old retirement system) members will see an increase of 8.46 percent in their gross pension payment.
MCPS Pension Plan Members
For MCPS Pension Plan (Pension Retirement System) members, the COLA for benefits based on all credited service earned prior to July 1, 2011, will be subject to a 3 percent cap. The COLA for benefits based on all credited service earned after July 1, 2011, will be subject to a maximum increase of 2 percent. COLAs may not exceed the CPI.
Therefore, the COLA for the portion of your benefits based on all credited service earned—
The COLA for retirees who receive their core pension from the State Retirement Agency (MSRA), if awarded, will be effective on July 1, 2023. For additional information, please visit the Maryland State Retirement Agency website.
Please be advised that you may see a reduction in your net pension payment as a result of health insurance increases that go into effect on January 1, 2023. If you need additional information or assistance, please contact the Employee and Retiree Service Center (ERSC) at 301-517-8100 or via email.