Updated October 30, 2026. Quick answer: The Texas Municipal Retirement System (TMRS) does not set one COLA for all cities. A participating city may give its retirees a COLA of 30%, 50% or 70% of the change in the CPI, either repeating or ad hoc, and may discontinue it at any time. COLAs are effective in January, and a retiree must have been retired 13 months from a city that provides one. From May 27, 2023 a city could adopt a non-retroactive repeating COLA effective January 1, 2024, 2025 or 2026.
More on public pension retirement ages and eligibility: the Texas TMRS retirement age and eligibility rules.
When it is paid
The TMRS member guide says: “COLAs are effective in January, and you must be retired for 13 months from a city that provides a COLA for you or your beneficiary to receive it.”
Repeating and ad hoc COLAs
The TMRS COLA overview says: “A city may offer either a repeating COLA or an ad hoc COLA. A repeating COLA is paid every year.” “An ad hoc COLA is only paid if the city decides to pay it in any given year.” On the size: “A city’s COLA may either be 30%, 50% or 70% of the change in the CPI.” It adds: “Are COLA payments guaranteed? No. A COLA is not guaranteed. A city may discontinue its COLA at any time.”
The newer option
TMRS describes it: “Effective May 27, 2023, the Texas Legislature amended the TMRS Act to provide participating cities with a new repeating COLA option.” It gives the effective dates: “All repeating COLAs adopted using the non-retroactive option must be effective on January 1, 2024, 2025, or 2026.”
An example from one city
A city’s contribution rate letter lists its plan provision. College Station’s letter for 2027 reads: “Retiree Cost of Living Adjustment (COLA) 70% of CPI Non-retroactive Repeating”. Your own city’s letter says what applies to you.
What the documents do not say
TMRS publishes no statewide percentage, and the January 2026 and January 2027 amounts by city were not found. The Government Code text could not be archived. The new option page names effective years through 2026, so its status for 2027 is not stated.
Where 2027 stands
The 2027 TMRS COLA is not set as a single figure: each city’s provision is in its own rate letter, and TMRS calculates each retiree’s amount every January.
Common mistakes
- Looking for one TMRS COLA number. Each city sets its own provision.
- Assuming a COLA is guaranteed. TMRS says a COLA is not guaranteed and a city may discontinue it.
- Expecting a COLA right after retiring. The retiree must have been retired 13 months.
Related: Texas Municipal Retirement System retirement decisions, how public pension decisions work, and whether Texas taxes pensions.
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Answer againSources
- TMRS, TMRS Member Benefits Guide, December 2023: www.tmrs.com
- TMRS, Cost of Living Adjustment (COLA) Overview flyer: www.tmrs.com
- TMRS, New Repeating COLA Option is Available for Cities: www.tmrs.com
- TMRS, 2027 City Contribution Rate letter, City of College Station: www.tmrs.com
- Related official page (not quoted): IRS Tax Topic 410, Pensions and annuities: www.irs.gov
- Related official page (not quoted): IRS Tax Topic 411, Pensions: the General Rule and the Simplified Method: www.irs.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.