How the Texas TRS COLA works
Texas TRS has no built-in cost-of-living adjustment. The Legislature can grant one, but state law generally allows it only when the pension fund’s funding period is 31 years or less. The most recent general increase was approved by voters in November 2023 and took effect in January 2024: 6% for those who retired before September 2001, 4% for retirements from September 2001 to August 2013, and 2% for retirements from September 2013 to August 2020.
What to expect in 2027
The Legislature meets again in January 2027. Retiree groups, including the Texas Retired Teachers Association, list a COLA as a top priority for that session. Any increase would be decided in 2027 and would usually take effect the following year.
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.