Government pensioners in the Virgin Islands who retired in 2023 or earlier will begin receiving higher monthly pensions at the end of August, following completion of the administrative work needed to implement a Cabinet-approved adjustment. Photo: GIS

The package includes a 2.57% Cost of Living Adjustment (COLA) on existing pensions and a new Minimum Expenditure Basket (MEB) allowance of $460.44 per month, with arrears payable from September for the period January toJune 2026. Photo: VINO/ File

The package includes a 2.57% Cost of Living Adjustment (COLA) on existing pensions and a new Minimum Expenditure Basket (MEB) allowance of $460.44 per month, with arrears payable from September for the period January to June 2026. 

Eligible pensioners will get two components added to their monthly entitlement, which are a 2.57% COLA applied to their current monthly pension amount and a Minimum Expenditure Basket (MEB) allowance of $460.44 per month.

According to a government press release, the measures are intended to address the sharp rise in living costs and to improve pension adequacy after several years without an adjustment.

Payment dates and schedule changes

The release added that the revised pension rates take effect at the end of the August 2026 pay period, meaning the first payment at the new rate will be issued on 31 August 2026.

Testing of a new digital payment system has been completed, and the system is expected to be fully operational by that same date.  After the transition, pension payments will be made on a bi-monthly schedule, with deposits commencing on 15 October 2026 directly into pensioners’ registered bank accounts. 

Arrears: back pay from January 2026

The release further stated that, because the Cabinet approved the adjustment with an effective date of January 1, 2026, all eligible pensioners will receive arrears covering the period from January 1 to June 30, 2026. The arrears represent the difference between what was previously paid and the revised entitlement over those six months.  Each pensioner’s arrears will be calculated individually and paid as a one‑time lump sum by direct deposit, with payments starting September 30 2026. 

Digital payslips and updated contact details 

Alongside the payment changes, the government has completed testing of a digital system that will automatically generate and issue job letters. From October 15 2026, pension payslips will be sent electronically by email rather than in paper form.  Pensioners are therefore urged to ensure their current email address and contact details are registered with the Department of Human Resources and the Treasury Department, and therefore all revised pension payments and arrears will be paid by direct deposit into the bank account each pensioner has on file with the Treasury Department. 

Pensioners are also encouraged to contact the Department of Human Resources and the Treasury Department as soon as possible to update their records. Verifying that the correct email address is on file is also recommended to avoid delays in receiving electronic payslips and other official correspondence.