- Retirees get a 1.5% increase every July 1. If you have been retired less than 12 months, it is prorated by month: retiring Jan. 1 gives half (0.75%) the next July.KRS 161.620(2); TRS 1-3 SPD (2011) p. 41
- For TRS 4, the 1.5% COLA can be cut for future years by the board if the foundational plan's funding falls below 90%. A COLA already received stays.KRS 161.633(3)(c)4.; TRS 4 SPD p. 19
- TRS 4 members can annuitize part or all of their supplemental benefit (at least the greater of $10,000 or 10% of the balance) and choose to build a COLA into that annuity. Supplemental benefit COLAs are not subject to the risk controls that can limit the foundational benefit COLA.TRS 4 SPD p. 16, Annuity; p. 19, Cost-of-living adjustment (COLA)
Your first COLA
1.5% increase each July 1 for retirees retired the full 12 months before the increase; prorated by each month short of 12 (retiring Jan. 1 gives half the COLA the next July 1). Applies to the member's and beneficiaries' option amounts. KRS 161.620(2); TRS 1-3 SPD (2011) p. 41, Cost of Living Adjustments; TRS 4 SPD p. 19
| You retire | First COLA | Size |
|---|---|---|
| July 1, 2026 | July 1, 2027 | 1.5% |
| August 1, 2026 | July 1, 2027 | 1.375% |
| October 1, 2026 | July 1, 2027 | 1.125% |
| January 1, 2027 | July 1, 2027 | 0.75% |
| April 1, 2027 | July 1, 2027 | 0.375% |
| June 1, 2027 | July 1, 2027 | 0.125% |
Our engine: 1.5% × the months you've been retired by July 1, out of 12.
Ten years of COLAs
On $3,300.00 a month (the TRS 4 plan description's second example), retiring July 1, 2026:
| July 1 | Increase | Monthly after |
|---|---|---|
| 2027 | 1.5% | $3,349.50 |
| 2028 | 1.5% | $3,399.74 |
| 2029 | 1.5% | $3,450.74 |
| 2030 | 1.5% | $3,502.50 |
| 2031 | 1.5% | $3,555.04 |
| 2032 | 1.5% | $3,608.36 |
| 2033 | 1.5% | $3,662.49 |
| 2034 | 1.5% | $3,717.43 |
| 2035 | 1.5% | $3,773.19 |
| 2036 | 1.5% | $3,829.78 |
Because each increase is figured on the raised amount, the $3,300.00 check is $3,829.78 a month after the 2036 increase.
TRS 4
For TRS 4 the 1.5% COLA on the foundational benefit is subject to the board's risk controls (may be prospectively adjusted if the foundational funding level falls below 90%); a COLA already received stays in the annuity. Supplemental-benefit annuities can include a COLA chosen by the retiree. KRS 161.633(3)(c)4.; TRS 4 SPD pp. 9, 19
TRS 4 members also have a supplemental benefit account. If you turn part of it into an annuity, you can choose to build a COLA into that annuity, and that COLA isn't subject to the funding limit above. TRS 4 SPD p. 19 More on TRS 4 is on which account type.
Extra increases
TRS of Kentucky may ask the Governor and General Assembly for an additional ad hoc COLA when funding is available; the statute lists past one-time authorizations (3.5% July 1, 2008; 0.7% July 1, 2009). TRS 1-3 SPD (2011) p. 41; KRS 161.620(5), (6)
The calculator shows your first COLA date.
Questions
How much is the TRS of Kentucky COLA?
1.5% every July 1, compounding.
When do I get my first COLA?
1.5% increase each July 1 for retirees retired the full 12 months before the increase; prorated by each month short of 12 (retiring Jan. 1 gives half the COLA the next July 1). Applies to the member's and beneficiaries' option amounts.
Is the TRS 4 COLA guaranteed?
For TRS 4 the 1.5% COLA on the foundational benefit is subject to the board's risk controls (may be prospectively adjusted if the foundational funding level falls below 90%); a COLA already received stays in the annuity. Supplemental-benefit annuities can include a COLA chosen by the retiree.
Source: TRS Summary Plan Descriptions and Service Retirement bulletins, TRS 4 SPD January 2022; TRS 1-3 SPD 2011; Service Retirement bulletins March 2023, TRS 1-3 SPD (2011) p. 41; TRS 4 SPD pp. 9, 16, 19. Also: KRS 161.620, 161.633. Last reviewed .