How the Illinois TRS COLA works
Tier 1 retirees receive a 3% increase every January, compounded, starting at the later of the first January after age 61 or the first anniversary of retirement. Tier 2 retirees receive the lesser of 3% or half of the CPI increase, applied to the original benefit (not compounded), starting at the later of age 67 or the first anniversary of retirement.
What to expect in 2027
Tier 1 retirees will receive another 3% in January 2027.
What a COLA is worth over time
On a $3,000 monthly pension, a 2% simple increase adds $60 a month every year, so after 20 years the check is $4,200. A 2% compounded increase reaches about $4,460. A plan with no automatic increase stays at $3,000 unless lawmakers act, and at 3% inflation that check buys about 45% less after 20 years. Our COLA guide compares how other plans handle it.