The rule
COLAs are not part of the pension plan. Any COLA is granted only by the Legislature, as needed; there is no guarantee. Handbook p. 31, Cost-of-Living Adjustments (COLAs)
New from Oct. 1, 2026
From the fiscal year beginning Oct. 1, 2026, a TRS of Alabama retiree benefit increase is paid only if granted by a separate act and its annual cost is appropriated in the Education Trust Fund budget as a separate employer rate; if not funded in a year, it is not paid that year. From Nov. 4, 2026, only one retiree increase may be granted per legislative quadrennium. Earlier COLAs and one-time bonuses are not affected. Ala. Code § 16-25-35 (Act 2025-336); RSA 2025 Regular Session summary, p. 1
The last COLA in the Code
7% of the gross benefit (at least $25 a month) from Oct. 1, 2006, for those retired before Oct. 1, 2005. This is the latest COLA article in Chapter 25 as read. Ala. Code § 16-25-200(a)
The October 2026 one-time bonus
Act 2026-601: a one-time longevity bonus, paid in October 2026, to retirees whose retirement was effective before May 1, 2026 and who receive (or are entitled to) a TRS of Alabama allowance on Sept. 30, 2026 (and to beneficiaries then receiving an allowance). Formula: 'one dollar ($1) per month for each year of service'. Not paid where it would impair Medicaid eligibility. Act 2026-601 (HB239), Section 3(a)-(f), printed p. 10
In October 2026 TRS of Alabama paid a one-time bonus to many retirees. The law's formula is '$1 per month for each year of service'; we haven't confirmed how RSA turned that into a dollar amount.
Not calculated.
Act 2026-601 (HB239), Section 3(b)What it means for you
Prices rise over time, so a fixed benefit buys less each year. Our calculator shows today's amount and doesn't add any raise.
From the sources
- TRS of Alabama benefits have no automatic cost-of-living increase. Any increase comes only from the Legislature, and there's no guarantee.Handbook p. 31
- From Oct. 1, 2026, a retiree increase is paid only if a separate law grants it and the budget funds it that year, and only one increase may be granted per four-year legislative term.Ala. Code § 16-25-35 (Act 2025-336); RSA 2025 Regular Session summary, p. 1
- The last COLA in the Code we read was 7% (at least $25 a month) from Oct. 1, 2006, for those retired before Oct. 1, 2005.Ala. Code § 16-25-200(a)
- Check with TRS of AlabamaIn October 2026, Act 2026-601 paid a one-time longevity bonus to TRS of Alabama retirees whose retirement started before May 1, 2026 (and to beneficiaries receiving an allowance on Sept. 30, 2026). The law's formula is '$1 per month for each year of service'.The dollar amount per year of service is not confirmed (needsValidation 'longevity-bonus-2026-amount').Act 2026-601 (HB239), Section 3
Questions
Does TRS of Alabama give an automatic COLA?
No. COLAs aren't part of the plan. Only the Legislature can grant one, and there's no guarantee.
What changed in 2026?
From Oct. 1, 2026, a retiree increase is paid only if a separate act grants it and its cost is funded in the Education Trust Fund budget. From Nov. 4, 2026, only one increase can be granted per four-year legislative term.
Was there a bonus in 2026?
Yes. Act 2026-601 paid a one-time longevity bonus in October 2026 to retirees whose retirement started before May 1, 2026. We haven't confirmed how RSA turned the law's formula into a dollar amount, so we don't calculate it.
Source: TRS Member Handbook, July 2026 edition (back cover "7-2026"), p. 31. Also: Code of Alabama Title 16, Ch. 25 and 25A; RSA 2025 Regular Session summary; Act 2026-601. Last reviewed .