Overview FAQs
New! I receive two TRS annuities. One is eligible for the COLA and one is not eligible for the COLA. Why did the tax withholding change on the January payment for my annuity that is not eligible for the COLA?
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.
New! How does TRS determine my tax withholding and where can I go to change my tax withholding?
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.
When will I be notified of my COLA amount and my new annuity amount?
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.
How might the recent lawsuits regarding the election affect the COLA?
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.
I've been reading news reports about an additional stimulus payment from TRS. Is this accurate?
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.
What did the 2023 legislature pass regarding benefit enhancements?
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.
What amounts are the cost-of-living adjustments (COLAs) and when will they be paid?
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
What are the next steps for the COLA?
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.
Is the COLA a permanent increase?
Yes, a Cost-of-Living Adjustment (COLA) is a permanent increase to your retirement benefit.
What is the difference between a one-time COLA and an ongoing or automatic COLA?
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.
When will the cost-of-living adjustments (COLAs) be applied to my annuity payments?
The COLA will be applied to your annuity payments beginning with your January 2024 annuity payment. TRS also will notify eligible recipients by mail.
Are all eligible TRS annuitants, as outlined in the legislation, included regardless of position type?
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.
New! What monthly benefit types are not eligible for the COLA?
The monthly benefit types that are excluded are amounts fixed by statute and do not vary with service or compensation:
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Annuitants receiving a minimum payment of $150/month, or less if reduced for early-age retirement or a selection of an optional retirement annuity
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Beneficiaries receiving only a guaranteed $250/month or $350/month retiree survivor or death benefit
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Disability retirees with less than ten years of service
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DROP payments
What if I can’t remember when I retired?
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.
What is my retirement date if I returned to employment after retirement?
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.
My spouse passed away, am I eligible for their annuity and what amount?
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.
New! I believe I am eligible to receive a COLA but have not been notified. What steps do I need to take?
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.