Overview FAQs
TRS calculates your income tax withholding on your combined annuities that you receive. The total amount of your withholding is allocated proportionately between your multiple annuity payments. Even though one of your annuities was not entitled to the COLA , your total tax withholding increased, because one of your annuities is entitled to the COLA. A portion of the increase is allocated to your annuity that is not eligible for the COLA. If you instructed TRS to withhold a specific amount for taxes, you may see a decrease in the tax amount withheld from your annuity payment that is not eligible for the COLA. This is because the tax withholding on your monthly annuity that is eligible for the COLA increased and your specified amount for taxes is proportionately allocated between your two TRS benefit payments.
Generally, TRS withholds the annuitant’s preferred withholding based upon the withholding certificate (Form W-4P or TRS228A) on file with TRS or the default rate. You can update your income tax withholding preference by visiting MyTRS and selecting Modify Withholding Preference. If you do not have a MyTRS account, you may download, complete and mail Form W-4P to TRS. Depending on when the form is received, withholding changes may not be updated in time for the January 2024 payment.
Beginning the week of Jan. 22, 2024, TRS will mail letters to eligible annuitants showing the new monthly annuity payment reflecting the COLA increase of their annuity payment amount. The COLA is a permanent increase to annuities and will be applied to eligible annuitants’ payments beginning with their January 2024 payment due Jan. 31, 2024.
TRS is continuing to monitor recent legal action regarding the Nov. 7 constitutional amendment election and will provide updates on our benefit enhancements webpage if there are any changes to the timing and distribution of the voter-approved COLAs. The TRS Board of Trustees adopted a resolution at its December meeting to take all necessary action to timely apply the COLA "upon certification of the election on Proposition 9 and receipt of the funding authorized by Proposition 9 for the COLA from the comptroller of public accounts." TRS does have the ability to ensure back payments are made if the issuance of the COLA is delayed.
TRS has already issued one-time stipends in 2023 as approved by the state legislature and we are preparing for the COLA. Recent reports of an additional "stimulus" payment are not accurate and we are working to ask the media outlets reporting this to correct it.
Senate Bill (SB) 10 and House Joint Resolution (HJR) 2 were passed by the 88th Texas Legislature in the 2023 regular session to provide two types of benefit enhancements to eligible retirees, beneficiaries, and alternate payees who are receiving a monthly annuity from TRS. The first is a one-time stipend for eligible annuitants who have reached age 70 by Aug. 31, 2023. The second is a one-time cost-of-living adjustment (COLA) for annuitants who retired on or before Aug. 31, 2020. As Proposition 9 (authorized by HJR2) was approved by Texas voters, pending eligibility, your annuity will increase permanently beginning with the January 2024 annuity payment that is payable on the last business day of the month.
A cost-of-living adjustment (COLA) will be paid in January 2024 as a result of Proposition 9 approval by Texas voters in the November 2023 election: SB 10 COLA Amounts Table
As provided by HJR 2, voters approved a constitutional amendment (Proposition 9) on Nov. 7, 2023, to provide the COLA. The COLA will be provided to eligible annuitants beginning with the January 2024 annuity payment that is payable on the last business day of the month. In mid-December 2023, TRS will begin mailing notification letters to eligible annuitants informing them of eligibility. Please note that not all annuitants will receive their notification letter at the same time due to special circumstances. Prior to January 2024 annuity payments being issued, TRS will mail a second letter showing the change in your annuity payment amount. This letter will include your new gross monthly annuity, IRS withholding, other applicable withholdings, and new net monthly annuity.
Yes, a Cost-of-Living Adjustment (COLA) is a permanent increase to your retirement benefit.
A one-time COLA is a permanent increase to your monthly annuity payment that you will continue to receive so long as you continue to receive that monthly annuity payment, but a one-time COLA does not entitle you to any subsequent adjustments. The COLA authorized by HJR 2, approved by Texas voters, is a one-time COLA for certain TRS retirees. The TRS pension plan does not currently provide for an ongoing or automatic COLA.
The COLA will be applied to your annuity payments beginning with your January 2024 annuity payment. TRS also will notify eligible recipients by mail.
As long as they are an eligible retiree receiving their TRS annuity, all position types will receive the COLA. Recipients must be a TRS retiree receiving their annuity from TRS.
The monthly benefit types that are excluded are amounts fixed by statute and do not vary with service or compensation: Annuitants receiving a minimum payment of $150/month, or less if reduced for early-age retirement or a selection of an optional retirement annuity Beneficiaries receiving only a guaranteed $250/month or $350/month retiree survivor or death benefit Disability retirees with less than ten years of service DROP payments
TRS will send notification letters to eligible annuitants. If you have a MyTRS account, you can find your retirement date displayed in your account. If you haven’t already registered for MyTRS, we highly encourage you to do so. There are enhanced security measures in place during the registration process to ensure your account is set up by you.
The amount of the COLA is based on your retirement date, regardless of whether you went back to work or are still currently working as an EAR retiree.
If you are currently receiving your deceased spouse’s monthly annuity under a continuing option annuity plan, you may be eligible for the COLA based on the deceased spouse’s retirement date.
Certain unique situations can cause delays. If you are eligible to receive the COLA and have verified that you have not received notification, please call 1-800-223-8778, Monday – Friday, 7 a.m. – 6 p.m. and speak with one of our Benefit Counselors for more information regarding your specific situation.
TRS calculates your income tax withholding on your combined annuities that you receive. The total amount of your withholding is allocated proportionately between your multiple annuity payments. Even though one of your annuities was not entitled to the COLA , your total tax withholding increased, because one of your annuities is entitled to the COLA. A portion of the increase is allocated to your annuity that is not eligible for the COLA. If you instructed TRS to withhold a specific amount for taxes, you may see a decrease in the tax amount withheld from your annuity payment that is not eligible for the COLA. This is because the tax withholding on your monthly annuity that is eligible for the COLA increased and your specified amount for taxes is proportionately allocated between your two TRS benefit payments.
Generally, TRS withholds the annuitant’s preferred withholding based upon the withholding certificate (Form W-4P or TRS228A) on file with TRS or the default rate. You can update your income tax withholding preference by visiting MyTRS and selecting Modify Withholding Preference. If you do not have a MyTRS account, you may download, complete and mail Form W-4P to TRS. Depending on when the form is received, withholding changes may not be updated in time for the January 2024 payment.
Beginning the week of Jan. 22, 2024, TRS will mail letters to eligible annuitants showing the new monthly annuity payment reflecting the COLA increase of their annuity payment amount. The COLA is a permanent increase to annuities and will be applied to eligible annuitants’ payments beginning with their January 2024 payment due Jan. 31, 2024.
TRS is continuing to monitor recent legal action regarding the Nov. 7 constitutional amendment election and will provide updates on our benefit enhancements webpage if there are any changes to the timing and distribution of the voter-approved COLAs. The TRS Board of Trustees adopted a resolution at its December meeting to take all necessary action to timely apply the COLA "upon certification of the election on Proposition 9 and receipt of the funding authorized by Proposition 9 for the COLA from the comptroller of public accounts." TRS does have the ability to ensure back payments are made if the issuance of the COLA is delayed.
TRS has already issued one-time stipends in 2023 as approved by the state legislature and we are preparing for the COLA. Recent reports of an additional "stimulus" payment are not accurate and we are working to ask the media outlets reporting this to correct it.
Senate Bill (SB) 10 and House Joint Resolution (HJR) 2 were passed by the 88th Texas Legislature in the 2023 regular session to provide two types of benefit enhancements to eligible retirees, beneficiaries, and alternate payees who are receiving a monthly annuity from TRS. The first is a one-time stipend for eligible annuitants who have reached age 70 by Aug. 31, 2023. The second is a one-time cost-of-living adjustment (COLA) for annuitants who retired on or before Aug. 31, 2020. As Proposition 9 (authorized by HJR2) was approved by Texas voters, pending eligibility, your annuity will increase permanently beginning with the January 2024 annuity payment that is payable on the last business day of the month.
A cost-of-living adjustment (COLA) will be paid in January 2024 as a result of Proposition 9 approval by Texas voters in the November 2023 election: SB 10 COLA Amounts Table
As provided by HJR 2, voters approved a constitutional amendment (Proposition 9) on Nov. 7, 2023, to provide the COLA. The COLA will be provided to eligible annuitants beginning with the January 2024 annuity payment that is payable on the last business day of the month. In mid-December 2023, TRS will begin mailing notification letters to eligible annuitants informing them of eligibility. Please note that not all annuitants will receive their notification letter at the same time due to special circumstances. Prior to January 2024 annuity payments being issued, TRS will mail a second letter showing the change in your annuity payment amount. This letter will include your new gross monthly annuity, IRS withholding, other applicable withholdings, and new net monthly annuity.
Yes, a Cost-of-Living Adjustment (COLA) is a permanent increase to your retirement benefit.
A one-time COLA is a permanent increase to your monthly annuity payment that you will continue to receive so long as you continue to receive that monthly annuity payment, but a one-time COLA does not entitle you to any subsequent adjustments. The COLA authorized by HJR 2, approved by Texas voters, is a one-time COLA for certain TRS retirees. The TRS pension plan does not currently provide for an ongoing or automatic COLA.
The COLA will be applied to your annuity payments beginning with your January 2024 annuity payment. TRS also will notify eligible recipients by mail.
As long as they are an eligible retiree receiving their TRS annuity, all position types will receive the COLA. Recipients must be a TRS retiree receiving their annuity from TRS.
The monthly benefit types that are excluded are amounts fixed by statute and do not vary with service or compensation: Annuitants receiving a minimum payment of $150/month, or less if reduced for early-age retirement or a selection of an optional retirement annuity Beneficiaries receiving only a guaranteed $250/month or $350/month retiree survivor or death benefit Disability retirees with less than ten years of service DROP payments
TRS will send notification letters to eligible annuitants. If you have a MyTRS account, you can find your retirement date displayed in your account. If you haven’t already registered for MyTRS, we highly encourage you to do so. There are enhanced security measures in place during the registration process to ensure your account is set up by you.
The amount of the COLA is based on your retirement date, regardless of whether you went back to work or are still currently working as an EAR retiree.
If you are currently receiving your deceased spouse’s monthly annuity under a continuing option annuity plan, you may be eligible for the COLA based on the deceased spouse’s retirement date.
Certain unique situations can cause delays. If you are eligible to receive the COLA and have verified that you have not received notification, please call 1-800-223-8778, Monday – Friday, 7 a.m. – 6 p.m. and speak with one of our Benefit Counselors for more information regarding your specific situation.
FAQs Related to Non-TRS Benefits and Federal Programs (One-Time COLAs)
No. The COLA increase of your monthly benefit will not affect your eligibility for Medicare. It is possible, that for a minority of retirees, the increase in your monthly pension benefit could cause some individuals to be "high-income" individuals for Medicare premium purposes. In general, certain high-income individuals pay higher premiums for Medicare Part B (medical insurance) and Medicare prescription drug coverage premiums. The higher premiums affect less than 5% of the people with Medicare.
Medicaid provides medical benefits to certain individuals. The Federal government establishes general guidelines for the administration of Medicaid benefits, and each individual state determines specific eligibility requirements to receive the benefits. Thus, a person who is eligible for Medicaid in one state may not qualify in another state. For purposes of Medicaid, and depending on any state law restrictions in your state of residence, the increase in your monthly pension amount will be considered “countable income" for Medicaid purposes. There may be other considerations for individuals in a long-term care facility. If you think this may impact your ability to qualify for Medicaid, we recommend you contact your local Medicaid office.
Generally, no. Employees who receive a government pension from employment in positions that are not covered by Social Security may have their Social Security benefits reduced under a provision called the Windfall Elimination Provision ("WEP"). The WEP is a reduction to your Social Security retirement benefit because of the pension earned from your TRS-covered employment. The WEP reduction is based on the number of years in which you have substantial earnings from employment covered by Social Security, and it cannot exceed ½ of the pension you receive from TRS-covered employment (this is called the "WEP guarantee"). Therefore, a COLA can potentially impact the cap under the WEP guarantee, but only if the COLA applies before your Social Security benefits and WEP reduction are first determined. Any COLA increases that apply after you begin receiving Social Security retirement benefits that are reduced by WEP will not be impacted.
Probably. Employees who receive a government pension from employment in positions that are not covered by Social Security may have their Social Security benefits reduced under a provision called the Government Pension Offset ("GPO"). The GPO is a reduction to your Social Security spouse or survivor benefits because of the pension earned from your TRS-covered employment. The GPO calculation is based on the amount of your government pension. In general, any spousal or survivor benefit may be reduced by 2/3 of the cost of living increase applied to the pension. If this impacts you, you should receive notice from your local Social Security office.
No. The COLA increase of your monthly benefit will not affect your eligibility to receive Social Security. However, for some individuals, it is possible that the increase in your retirement benefits could require you to pay income tax on a portion of your Social Security benefit. The Social Security Administration estimates that about 40% of people who receive Social Security pay income tax on their benefits. If you think this may impact you, we recommend that you contact your local Social Security office or speak with your tax or financial advisor or accountant.
SSI pays benefits to aged, blind, and disabled people who have limited income and resources. SSI is administered by the federal government but may be supplemented by an individual State. For purposes of SSI, income is anything you receive during a calendar month that is used or could be used to meet your needs for food or shelter. Income is determined for each calendar month of eligibility. Thus, it is possible that the increased monthly benefit payment could cause you to exceed the federal benefit rate and any state supplemental rate. If you think this may impact you, please contact your local Social Security office.
It depends on which benefits you currently receive or are currently eligible to receive or in which programs you are eligible to participate. You should contact the relevant programs for further information regarding how the COLA increase of your monthly benefit could impact your benefits.
No. The COLA increase of your monthly benefit will not affect your eligibility for Medicare. It is possible, that for a minority of retirees, the increase in your monthly pension benefit could cause some individuals to be "high-income" individuals for Medicare premium purposes. In general, certain high-income individuals pay higher premiums for Medicare Part B (medical insurance) and Medicare prescription drug coverage premiums. The higher premiums affect less than 5% of the people with Medicare.
Medicaid provides medical benefits to certain individuals. The Federal government establishes general guidelines for the administration of Medicaid benefits, and each individual state determines specific eligibility requirements to receive the benefits. Thus, a person who is eligible for Medicaid in one state may not qualify in another state. For purposes of Medicaid, and depending on any state law restrictions in your state of residence, the increase in your monthly pension amount will be considered “countable income" for Medicaid purposes. There may be other considerations for individuals in a long-term care facility. If you think this may impact your ability to qualify for Medicaid, we recommend you contact your local Medicaid office.
Generally, no. Employees who receive a government pension from employment in positions that are not covered by Social Security may have their Social Security benefits reduced under a provision called the Windfall Elimination Provision ("WEP"). The WEP is a reduction to your Social Security retirement benefit because of the pension earned from your TRS-covered employment. The WEP reduction is based on the number of years in which you have substantial earnings from employment covered by Social Security, and it cannot exceed ½ of the pension you receive from TRS-covered employment (this is called the "WEP guarantee"). Therefore, a COLA can potentially impact the cap under the WEP guarantee, but only if the COLA applies before your Social Security benefits and WEP reduction are first determined. Any COLA increases that apply after you begin receiving Social Security retirement benefits that are reduced by WEP will not be impacted.
Probably. Employees who receive a government pension from employment in positions that are not covered by Social Security may have their Social Security benefits reduced under a provision called the Government Pension Offset ("GPO"). The GPO is a reduction to your Social Security spouse or survivor benefits because of the pension earned from your TRS-covered employment. The GPO calculation is based on the amount of your government pension. In general, any spousal or survivor benefit may be reduced by 2/3 of the cost of living increase applied to the pension. If this impacts you, you should receive notice from your local Social Security office.
No. The COLA increase of your monthly benefit will not affect your eligibility to receive Social Security. However, for some individuals, it is possible that the increase in your retirement benefits could require you to pay income tax on a portion of your Social Security benefit. The Social Security Administration estimates that about 40% of people who receive Social Security pay income tax on their benefits. If you think this may impact you, we recommend that you contact your local Social Security office or speak with your tax or financial advisor or accountant.
SSI pays benefits to aged, blind, and disabled people who have limited income and resources. SSI is administered by the federal government but may be supplemented by an individual State. For purposes of SSI, income is anything you receive during a calendar month that is used or could be used to meet your needs for food or shelter. Income is determined for each calendar month of eligibility. Thus, it is possible that the increased monthly benefit payment could cause you to exceed the federal benefit rate and any state supplemental rate. If you think this may impact you, please contact your local Social Security office.
It depends on which benefits you currently receive or are currently eligible to receive or in which programs you are eligible to participate. You should contact the relevant programs for further information regarding how the COLA increase of your monthly benefit could impact your benefits.