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Washington DRS COLA 2027: Plans 2 and 3 Rule and 2026 Table

Updated October 30, 2026. Quick answer: Washington State DRS pays an automatic COLA each July to Plan 2 and Plan 3 members who have been retired at least a year, based on the Seattle-area CPI and capped at 3%. The July 2026 table shows 0.00% for those retired from July 2, 2025 to July 1, 2026, 2.55% for those retired from January 1, 2025 to July 1, 2025, and 3.00% for those retired earlier. PERS 1 and TRS 1 have no automatic general COLA (only an optional one chosen at retirement), but 2026 legislation (SB 5862) gave eligible retirees a one-time, permanent 3% increase capped at $110.00 a month. No 2027 COLA is published.

More on public pension retirement ages and eligibility: the Washington TRS Plan 2 and Plan 3 retirement age and eligibility rules.

More on public pension retirement ages and eligibility: the Washington PERS Plan 2 retirement age and eligibility rules.

Estimate a Washington PERS Plan 2 pension from service, age and average final compensation: Washington PERS Plan 2 retirement calculator.

Plans 2 and 3: an automatic July COLA

The DRS COLA page says: “If you’re in Plan 2 or 3 and have been retired at least one year, you’ll receive a cost-of-living adjustment (COLA) automatically each July”. “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”. “Most plan COLA percentages are based on the Consumer Price Index (CPI) for the greater Seattle area.”

The July 2026 table

DRS prints these percentages for July 2026:

Retirement dateCOLA
July 2, 2025 through July 1, 20260.00%
January 1, 2025 through July 1, 20252.55%
Prior to January 1, 20253.00%

Plans 1: no automatic general COLA, one 2026 increase

The older Plan 1 annual increase was frozen by law. For TRS 1, RCW 41.32.489 says: “After July 1, 2010, those currently receiving benefits under this section will receive no additional annual increase amounts above the amount in effect on July 1, 2010, except for those who qualify under subsections (2)(b) and (3)(a) of this section.” Another TRS 1 section, RCW 41.32.483, adds: “No additional annual increase under this section shall be provided after June 30, 2011.” DRS also describes an optional COLA: “PERS and TRS Plan 1 members have an optional COLA they can request when applying for retirement.”

In 2026 the Legislature acted. DRS announced: “eligible PERS 1 and TRS 1 retirees will receive a one-time, permanent 3% increase in their monthly benefit, capped at $110.00 per month.”

Where 2027 stands

No 2027 Washington DRS COLA is published: the July 2027 percentages come from the Seattle-area CPI and DRS has not posted them, and this page updates when DRS does.

Common mistakes

  • Treating the 3% cap as a guaranteed increase. The July 2026 table shows 0.00% for the newest retirees.
  • Expecting the Plan 1 uniform increase to continue. RCW 41.32.483 says no additional annual increase under that section was provided after June 30, 2011.
  • Assuming the one-time 3% increase for PERS 1 and TRS 1 repeats. It is described as one-time.

Related: Washington DRS retirement decisions, how public pension decisions work, and whether Washington taxes pensions.

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Sources

  • Washington DRS, Cost of Living Adjustment (COLA): www.drs.wa.gov
  • Washington State Legislature, RCW 41.32.489 Retirement allowance, annual increases restricted after July 1, 2010: app.leg.wa.gov
  • Washington State Legislature, RCW 41.32.483 Annual increase amount, no additional increases after June 30, 2011: app.leg.wa.gov
  • Washington DRS, PERS 1, TRS 1 one-time benefit increase takes effect in July: www.drs.wa.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.

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