Recent Cost-of-Living Adjustment (COLA)
Qualified TRS of Texas retired educators (such as teachers, librarians, bus drivers, custodians, aides and others) can look forward to receiving enhanced monthly annuity payments. On November 7, 2023, a majority of Texas voters approved the constitutional amendment to fund a cost-of-living adjustment (COLA). The measure was Proposition 9 of the statewide 2023 November Constitutional Amendment Election.
Who’s Paying?
The 88th Texas Legislature authorized $3.3 billion for the COLAs. The Legislature fully funded these benefits, so they did not impact the pension fund’s valuation.
House Joint Resolution (HJR) 2 included the following, COLAs to begin in January 2024:
- 2% COLA for eligible retirees who retired between Sept. 1, 2013, through Aug. 31, 2020
- 4% COLA for eligible retirees who retired between Sept. 1, 2001, through Aug. 31, 2013
- 6% COLA for eligible retirees who retired on or before Aug. 31, 2001
Remember, as a state agency, TRS is not permitted to advocate or lobby for or against any legislation or ballot items. TRS’ focus is on administering pension and certain health benefits for our participants and their beneficiaries.
Learn More About Benefit Enhancements
TRS works to keep our members informed and to provide the most efficient and timely service regarding approved benefit enhancements to eligible members. TRS maintains a webpage regarding the 2023 benefit enhancements. To learn more about how benefit enhancements are funded in general, please watch our video series titled Understanding Your Pension Fund.
Benefit enhancements such as a cost-of-living adjustment (COLA) can only be considered by the Texas Legislature when the pension trust fund is actuarially sound. Actuarial soundness refers to the likelihood that the combination of money in the fund, along with future contributions, will be enough to pay the promised benefits. The definition includes an amortization period of less than 31 years.