Monday, April 15, 2024

COLA rates established for 2024

COLA rates established for 2024

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).

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