The cost of living adjustment (COLA) for retirees effective July 1, 2019 will be 1.9 percent.
Any retired state employee who has been retired for at least 12 full months on July 1 of each year is eligible to receive an adjustment in their retirement allowance.
Tennessee Code Annotated, 8-36-801 dictates the COLA award.
Basically, the change in the Consumer Price Index (CPI) for the previous calendar
year, as determined by the U.S. Department of Labor is awarded as COLA up to a
maximum of 3%. However, if the CPI increase is less than 0.5% for the year, no
COLA will be awarded. When the CPI is between 0.5% and 1% for the year, a full
1% COLA is granted.