Are my retirement benefits affected by inflation?

Yes, your retirement benefits are affected by inflation. The New York State Local Retirement System recognizes the impact of inflation on retirees and takes measures to ensure their benefits maintain their purchasing power over time. To address inflation, the System includes a Cost-of-Living Adjustment (COLA) provision in some retirement options. The COLA feature is designed to provide annual increases in retirement benefits to help offset the effects of inflation. However, it is important to note that not all retirement options include a COLA provision. For those options without it, the purchasing power of benefits may be eroded over time as inflation occurs. Therefore, it is crucial to consider this factor when choosing a retirement option to ensure your benefits align with the future cost of living.