FOR IMMEDIATE RELEASE: November 8, 2023
Teacher Retirement System to Issue COLA to Eligible Annuitants
Voter Approval Means Increased Annuities Will Go Out in January
AUSTIN — Eligible annuitants of the Teacher Retirement System of Texas (TRS) will begin receiving a permanent cost-of-living adjustment (COLA) to their monthly annuity payments beginning in January 2024. Voters approved a constitutional amendment on November 7 allowing TRS to issue the COLA. TRS will notify eligible annuitants about their annuity percentage increase.
“As always, the team at TRS is committed to improving retirement security and ensuring our members receive legislatively approved benefit enhancements as efficiently as possible,” said TRS Executive Director Brian Guthrie. “Texas voters decided it was time for eligible TRS annuitants to enjoy an increase in their spending power and we are ready to administer this adjustment for them. On behalf of our Board of Trustees, we thank the Texas Legislature for providing $5 billion in funding for benefit enhancements, including the COLA, to protect the health of the TRS pension trust fund.”
Senate Bill (SB) 10 and House Joint Resolution (HJR) 2 passed during the 88th Regular Legislative Session to provide two types of benefit enhancements to eligible TRS annuitants (certain retirees, beneficiaries, and alternate payees who are receiving a monthly annuity from TRS).
TRS began issuing the first enhancement, one-time stipends, in September 2023.
The second enhancement, the COLA, will be applied to eligible annuitants’ payments beginning with their January 2024 payment due the last business day of the month. The COLA is a permanent one-time increase to annuities as follows:
The legislature passed House Bill (HB) 1 which provides $5 billion to fully pay for the benefit enhancements:
- $3.35 billion for COLAs
- $1.64 billion for stipends
Guthrie pointed out any benefit enhancement will benefit other Texans as well. That is because most TRS annuitants remain in Texas and spend their retirement dollars across the state. Read more on TRS’ Value to all Texans here.
Need more background? Visit the 2023 TRS Retiree Benefit Enhancements webpage.
The Teacher Retirement System of Texas (TRS) is one of the largest retirement systems in the nation. The system's core mission is to make a positive difference in the lives of Texas educators by prudently investing and managing trust assets and delivering member benefits. As of August 31, 2024, TRS pension fund had a market value of $209.5 billion.