Updated October 30, 2026. Quick answer: The Teacher Retirement System of Texas does not provide regular cost-of-living increases: its benefits handbook says any post-retirement increase must be authorized by the Texas Legislature. The last was a one-time adjustment under S.B. 10 of 2023, paid from the January 2024 annuity: six percent for retirement on or before August 31, 2001, four percent for retirement after August 31, 2001 through August 31, 2013, and two percent for retirement after August 31, 2013 through August 31, 2020. No 2027 COLA is set.
More on public pension retirement ages and eligibility: the Texas TRS retirement age and eligibility rules for Tier 5.
No regular COLA
The TRS benefits handbook of September 2025 says: “The TRS retirement plan does not provide for regular cost-of-living increases to the amount of your annuity. Any post-retirement increase in benefits must be authorized by the Texas Legislature.” “If the Texas Legislature authorizes a post-retirement cost of living increase, it typically is based on the amount of the retiree’s annuity.”
The 2023 one-time adjustment
S.B. 10 of the 88th Legislature added a one-time adjustment. The enrolled bill reads: “The retirement system shall make a one-time cost-of-living adjustment payable to annuitants receiving a monthly death or retirement benefit annuity, as provided by this section.” “An adjustment under this section must be made beginning with an annuity payable for the month of January 2024.”
It sets the rate by retirement date: “if the retiree’s effective date of retirement was on or before August 31, 2001, six percent;” “if the retiree’s effective date of retirement was after August 31, 2013, but on or before August 31, 2020, two percent;”
The same bill also provided a one-time supplemental payment of $7,500 for an annuitant at least 75 years old, as the enrolled text reads.
The 2025 session
Texas Legislature Online history pages for three 2025 TRS cost-of-living bills (H.B. 5191, H.B. 5156 and S.B. 174) show referral to committee as the last recorded action when read on October 30, 2026. The documents read show no cost-of-living increase enacted in 2025.
Where 2027 stands
No 2027 TRS Texas COLA is set: only the Legislature can authorize an increase, none is shown in the documents read, and this page updates if one is enacted.
Common mistakes
- Expecting a yearly COLA. TRS says its plan does not provide for regular cost-of-living increases.
- Treating the 2023 adjustment as repeatable. It is described as a one-time adjustment.
- Assuming a retiree after August 31, 2020 got it. The 2023 adjustment stopped at that retirement date.
Related: Texas TRS retirement decisions, how public pension decisions work, and whether Texas taxes pensions.
Find the right next step for your situation
About how much do you have invested? Pick the range that fits; your next step appears immediately below.
Talk to an advisor about retirement income
For U.S. investors with $250,000 or more in investable assets. WiserAdvisor is an independent service matching you with 2 to 3 vetted advisers. Its form asks for your ZIP code and answers to a few questions; a match is not guaranteed.
Free to request, with no obligation to hire. By submitting, you consent to calls, texts and emails from WiserAdvisor and up to three advisers. Advisers pay for introductions.
Clear Money Guide may earn a referral payment for a qualifying completed form. An introduction is not a Clear Money Guide recommendation.
Opens on WiserAdvisor’s site in a new tab.
Explore advisor help with retirement income
Considering financial advice? Request an adviser introduction with no obligation to hire.
The form is run by Kapitalwise, our advisor-matching partner. Requesting an introduction is free. Submitting the form shares your contact details with advisers, so expect calls and texts. Advisers pay for introductions. Clear Money Guide may earn a referral payment for a qualifying submitted form, whether or not you hire anyone. A match is not guaranteed.
The Kapitalwise form opens here; you stay on this page.
What happens when you press the button
It asks about nine questions: age, investable assets, location; then your name, email and phone number, and verifies the phone by text. Nothing loads and nothing reaches Kapitalwise until you press the button.
Prefer flat-fee or hourly pricing instead? Compare ranges here.
Answer againSources
- Teacher Retirement System of Texas, TRS Benefits Handbook (September 2025): trs.texas.gov
- Texas Legislature, S.B. No. 10, 88th Legislature, enrolled version (Gov’t Code 824.703, one-time COLA Jan 2024): capitol.texas.gov
Read from the primary documents linked above on October 30, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the IRS itself is the right place to confirm anything consequential.