There is no automatic COLA. A permanent benefit increase (PBI) is paid July 1 only if recommended by the TRSL Board and approved by the Legislature, and only if funds are sufficient. Since 2023 PBIs can be funded two ways. Excess investment earnings: amount and frequency depend on funding level, return and CPI-U, on the first $60,000 of benefit (indexed); no PBI if CPI-U did not rise, funds are short, or a PBI was granted the year before and TRSL is under 85% funded. Employer contributions: up to 2% on the first $60,000 (not indexed); TRSL expects enough in the PBI account to pay one in 2029 and projects one every two to three years if funding allows. Once the oldest debt schedule is paid off, only the employer-contribution method will exist. Guide for Retirees pp. 6-7, Will my benefit increase?; R.S. 11:883.5(C)
Who qualifies
| Funding method | Size | You must be |
|---|---|---|
| Employer contributions | Up to 2% on the first $60,000 | 62 or older, receiving 2 years |
| Excess investment earnings | Varies, on the first $60,000 (indexed) | 60 or older, receiving 1 year |
Guide for Retirees pp. 6-7; R.S. 11:883.5(D)-(E); Guide for Retirees pp. 6-7; R.S. 11:883.4 (max 1.5% for that section's increase)
What a 2% raise would add
Examples only, not a forecast. On a $30,000 yearly benefit, 2% adds $600 a year ($50 a month). On $80,000, only the first $60,000 counts: $1,200 a year.
Raises after retirement (permanent benefit increases) need the Legislature's approval and enough money. Their size and timing aren't known.
We don't add any future raise to your estimate. Examples of a 2% raise are labelled as examples.
Guide for Retirees pp. 6-7; R.S. 11:883.5DROP and ILSB
DROP participants get no PBI during DROP or while employed after DROP; eligible again one year after terminating employment. DROP Handbook p. 21, Permanent benefit increase (PBI); R.S. 11:787(D)
PBIs for ILSB retirees are computed on the reduced monthly benefit, not the lump sum. R.S. 11:783(A)(3)(e)
A raise you buy: the ACO
Annual COLA Option: a self-funded, guaranteed 2.5% yearly increase in exchange for an actuarially reduced benefit. Applied on the retiree's anniversary date (retirement date or DROP start) once the retiree is age 55 and retired one year. Spousal lifetime beneficiaries keep it; non-spousal beneficiaries do not. Voluntary, permanent and irrevocable. Legislative COLAs (PBIs) still apply. ACO brochure p. 1; Member Handbook p. 12; R.S. 11:783(A)(4) TRSL's ACO example →
From the sources
- There is no automatic cost-of-living increase. A permanent benefit increase (PBI) is paid on July 1 only if the TRSL Board recommends it, the Legislature approves it, and there is enough money.Guide for Retirees p. 6; R.S. 11:883.5(C)
- Under the employer-contribution funding method, a PBI is up to 2% on the first $60,000 of your benefit. TRSL expects enough money to pay one in 2029, then about every two to three years if funding allows. You must be at least 62 and have received a benefit for two years.Guide for Retirees pp. 6-7; R.S. 11:883.5(D)-(E)
- You can buy your own guaranteed 2.5% yearly increase with the Annual COLA Option (ACO) by taking a smaller starting benefit. It starts after you are 55 and have been retired a year. In TRSL's example, $1,892 with ACO reaches $3,338.64 in year 23, versus a flat $2,517 without it; the ACO monthly amount passes the regular one around year 15, and it catches up in total pay between years 20 and 23.ACO brochure pp. 1-2
Questions
Does TRSL have an automatic COLA?
No. Raises after retirement are permanent benefit increases (PBIs). Each needs the TRSL Board's recommendation, the Legislature's approval and enough money in the fund.
When is the next TRSL raise expected?
TRSL expects the first employer-funded one in 2029; then every two to three years if funded.
Can I get a guaranteed raise?
Yes, by choosing the Annual COLA Option at retirement: 2.5% a year, paid for with a smaller starting benefit.
Source: TRSL Member Handbook: Regular Plan & Plan B, Last revised April 2026, p. 12. Also: Guide for Retirees pp. 6, 6-7; DROP Handbook p. 21; ACO brochure pp. 1, 1-2; La. R.S. 11:783, 11:787, 11:883.4, 11:883.5. Last reviewed .