Short answer: each July, once you've had 12 full months of checks, TCRS raises your benefit by the prior year's CPI rise, capped at 3%. If prices rose 0.5% to under 1%, the raise is 1%; below 0.5%, there's none. Raises compound. Hybrid COLAs can be trimmed by the Hybrid Plan's cost controls. Your starting check comes from the formula and your payment option. See the first COLA date for the guide's example in the calculator.
The rule
Retirees who have received benefits for at least 12 full months on July 1 get an increase if the CPI rose at least 0.5% in the preceding calendar year: 1% if the CPI rose 0.5%-0.99%; the CPI increase itself if 1% or more, capped at 3%. Compounded; paid in the July benefit. Hybrid COLAs may be suspended or reduced under cost controls. Legacy Member Guide p. 12, Cost-of-Living Adjustments After Retirement; Hybrid Member Guide p. 11, Cost-of-Living Adjustments After Retirement; TCRS annual report FY2025 p. 36
| Prices rose (CPI) | 0% | 0.4% | 0.5% | 0.8% | 1% | 2% | 2.5% | 3% | 4% | 6% |
|---|---|---|---|---|---|---|---|---|---|---|
| TCRS COLA | 0% | 0% | 1% | 1% | 1% | 2% | 2.5% | 3% | 3% | 3% |
Our calculation from the rule above. The actual COLA each year depends on the CPI for the year before.
When your first COLA comes
Annual report: granted each July for annuitants retired before July 2 of the previous year. Checklist: first July pay period after at least 12 consecutive months on retired payroll. TCRS annual report FY2025 p. 36; Retirement Checklist p. 3 (PDF page)
Example (our calculation): TCRS's Legacy example retiree, $1,968.75 a month from July 1, 2026, if prices rose 2.5% every year:
- 2027: +2.5% → $2,017.97 a month
- 2028: +2.5% → $2,068.42 a month
- 2029: +2.5% → $2,120.13 a month
- 2030: +2.5% → $2,173.13 a month
- 2031: +2.5% → $2,227.46 a month
Retiring July 1, 2026, the first raise would come on July 1, 2027, after 12 full months of checks.
From the sources
- After 12 full months of benefits, retirees get a July raise if prices (CPI) rose at least 0.5% the year before: 1% if the CPI rose 0.5% to 0.99%, otherwise the CPI rise, capped at 3%. Raises compound.Legacy Member Guide p. 12; Hybrid Member Guide p. 11
- Hybrid Plan COLAs can be reduced or suspended if the plan's cost controls are triggered.Hybrid Member Guide p. 11, p. 16
- TCRS's annual report says a 3% cost-of-living adjustment was given in July 2024.TCRS annual report FY2025 p. 26
- For the teacher plans' pension liability, TCRS's actuaries assume a 2.125% COLA a year. That's a planning assumption, not a promise.TCRS annual report FY2025 p. 45
Questions
How big is the TCRS COLA?
Retirees who have received benefits for at least 12 full months on July 1 get an increase if the CPI rose at least 0.5% in the preceding calendar year: 1% if the CPI rose 0.5%-0.99%; the CPI increase itself if 1% or more, capped at 3%. Compounded; paid in the July benefit. Hybrid COLAs may be suspended or reduced under cost controls.
When do I get my first TCRS COLA?
On the first July 1 after you've received benefits for at least 12 full months.
Does the Hybrid Plan get the same COLA?
Yes, by the same rule, but Hybrid COLAs can be reduced or suspended if the plan's cost controls are triggered.
Source: TCRS Legacy Retirement Plan for Teachers Member Guide and Hybrid Retirement Plan for State Employees and Teachers Member Guide, Legacy 12/2024; Hybrid revised 07/2024, Legacy Member Guide pp. 5, 12; Hybrid Member Guide pp. 11, 16. Also: TCRS annual report FY2025 pp. 26, 36, 45; Retirement Checklist p. 3. Last reviewed .