Updated October 30, 2026. Quick answer: The North Carolina Teachers’ and State Employees’ Retirement System has no automatic COLA: it is up to the General Assembly to enact an increase. For 2026 it provided a 2.5% one-time supplement, paid October 23, 2026 with the October benefit payment. A one-time supplement does not raise future monthly payments. No 2027 increase or supplement is set.
More on public pension retirement ages and eligibility: the North Carolina TSERS retirement age and eligibility rules.
Who decides
The TSERS retirement allowance increase page says: “It is up to the discretion of the General Assembly to enact legislation to provide for an increase for TSERS retirees.” “TSERS retirement benefit increases may be periodically granted by the General Assembly when the TSERS employer contribution rate would not need to increase to pay for the increase, or when the General Assembly appropriates funds in the State budget to provide for an increase.”
When an increase is considered
“Increases are generally considered when TSERS experiences sufficient investment gains to cover the additional actuarial accrued liabilities created by providing the increase, and if the annual Consumer Price Index increases or if active members receive salary increases.” The page adds: “At times, the General Assembly may determine that there are not enough budgetary funds available to cover the full liability that TSERS takes on when a permanent increase in retirement allowances is granted. Instead, the General Assembly may choose to grant a one-time benefit supplement over a permanent increase.” “These are not ongoing or permanent increases to retirement allowances.”
The 2026 supplement
The page states: “The one-time supplement will be included in your October benefit payment and will be paid out on October 23, 2026.”
The page lists recent years:
| Year | Increase or supplement |
|---|---|
| 2026 | 2.5% one-time supplement |
| 2025 | no increase or supplement |
| 2024 | no increase or supplement |
| 2023 | 4% one-time supplement |
| 2022 | 4% one-time supplement |
| 2021 | 2% one-time supplement |
| 2018 | 1% one-time supplement |
| 2017 | 1% increase for retirements on or before July 1, 2016 |
Where 2027 stands
No 2027 TSERS increase or supplement is set: the General Assembly decides by legislation, and this page updates if one is enacted. The TSERS page, last modified October 21, 2026, lists no 2027 entry.
Common mistakes
- Treating a one-time supplement as a permanent raise. TSERS says these are not ongoing or permanent increases to retirement allowances.
- Expecting a yearly COLA. The table shows no increase or supplement in 2024 and 2025.
- Counting on a 2027 increase. It depends on legislation that has not been enacted.
Related: North Carolina TSERS retirement decisions, how public pension decisions work, and whether North Carolina taxes pensions.
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Answer againSources
- North Carolina Retirement Systems (Department of State Treasurer), Retirement Allowance Increase(s): www.myncretirement.gov
- Related official page (not quoted): North Carolina General Statutes, Chapter 135, Retirement System for Teachers and State Employees: www.ncleg.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.