A cost-of-living adjustment (COLA) is an annual adjustment applied to your retirement income to reflect changes in the economy (inflation). Most DRS retirement plans offer a COLA, but Plan 1 members in PERS and TRS only have a COLA if they selected it during retirement. View the 2024 COLA percentages by retirement date and plan. When will I receive the 2024 COLA? LEOFF Plan 1 COLAs take effect April 1 and start with April 30 benefit payments. All other DRS Plan COLAs take effect July 1 and start with July 31 benefit payments. You need to be retired by July 1 for at least one year to be eligible for a COLA. Once you’re eligible, you’ll receive any COLA starting with the pension payment issued at the end of July, and every year after. You don’t need to apply to receive the COLA – it’s automatic. How much will the COLA be? The maximum annual COLA you can receive for most DRS plans is 3%. If inflation that year is above 3%, the additional amount is applied to future adjustments (called COLA banking). Any year inflation is lower than 3%, the COLA can pull from banked percentages in prior years. This happens automatically and the adjustment is made for you. You could receive a different adjustment each year, depending on the amount available in your COLA bank. Will PERS 1 and TRS 1 receive a benefit increase? Certain retirees in Plan 1 of the Public Employees’ Retirement System and Plan 1 of the Teachers’ Retirement System (PERS 1 and TRS 1) will receive a one-time benefit increase in July 2024 as a result of House Bill 1985 (pending the governor’s signature). More about COLAs [reblex id='14232']

In May, you might notice that the timing for your Deferred Compensation Program (DCP) contribution changes are happening sooner. SECURE Act 2.0 of 2022, part of the Consolidated Appropriations Act (CAA) of 2023, builds on and expands the SECURE Act of 2019 to improve retirement savings opportunities. Before this option was added, contribution updates took place on the first of the month following the month they were requested. Now, both new and established participants can have their contribution updates to existing elections take place as soon as administratively possible. However, keep in mind your contributions are dependent on your employer’s payroll calendar. When you request a contribution change, it will happen as soon as your employer can make it happen. If you have any questions, please contact your employer.

Certain retirees in Plan 1 of the Public Employees’ Retirement System and Plan 1 of the Teachers’ Retirement System (PERS 1 and TRS 1) will receive a one-time benefit increase in July of this year. This is the result of legislation approved in 2024. Under the law, eligible PERS 1 and TRS 1 retirees will receive a one-time, permanent 3% increase in their monthly benefit, to a maximum of $110 per month. The increase applies to PERS 1 and TRS 1 retirees receiving a monthly benefit on or before July 1, 2023. The adjustment does not apply to retirees who already qualify for an annual increase in 2024 through one of the existing minimum benefit provisions provided by the plans. The one-time increase will be reflected in retirement benefits paid at the end of July. Plan 1 Benefit increase Frequently Asked Questions What is HB 1985? HB 1985 was passed by the Legislature and signed into law by the governor during the 2024 legislative session. It provides a one-time, permanent increase of 3% (not to exceed $110) to the monthly pension benefit of Public Employees Retirement System (PERS) Plan 1 and Teachers’ Retirement System (TRS) Plan 1 retirees. Who will receive the increase? PERS Plan 1 and TRS Plan 1 retirees who were receiving a monthly benefit on July 1, 2023 will receive this one-time increase. However, there are certain exceptions. Who will NOT be eligible for this increase? TRS Plan 1 retirees who are currently receiving a Temporary Disability retirement benefit PERS Plan 1 retirees currently receiving a Duty Disability Retirement Plan 1 retirees who will receive a Benefit Minimum Increase or an Adjusted Minimum Benefit COLA as these benefits receive a separate increase annually. For more on each of these benefits, check out the COLA page. Plan 1 Legal Order Payees who were not granted COLA eligibility in their Legal Order documents Note: This is not a complete list. Please see HB 1985 for specifics of eligibility. If I’m eligible to receive this increase, how much will it be? The increase will be 3% (not to exceed $110). When will I see the increase in my benefit? The increase to your benefit will be reflected in your pension payment at the end of July. If I have purchased service credit or an annuity, will those increases be applied to this benefit increase calculation? Yes. The increase is applied to your total benefit amount. If I chose the Auto COLA or the Age 65 COLA, how will these be impacted by this increase? If you selected the Auto COLA or Age 65 COLA, you will receive those increases first, and then the one-time permanent 3% increase will be calculated including those adjustments. Example: [table id=353 /]

During the 2024 session, DRS tracked bills that affected retirement, including pensions and benefits. Here are bills tracked, including summary descriptions from legislative reports: [table id=195 /] Subscribe to our policy list below for rule and legislative updates.