Updated October 30, 2026. Quick answer: The Wisconsin Retirement System does not pay a cost-of-living increase. Each year the Department of Employee Trust Funds reviews Core and Variable Trust Fund investment results as of December 31, and annuities may rise, stay the same or fall. The May 1, 2026 adjustment was 2.1% for Core annuities and 18% for Variable annuities, announced March 6, 2026. The 2027 adjustment is not set yet.
More on public pension retirement ages and eligibility: the Wisconsin WRS retirement age and eligibility rules.
Why it is not a COLA
The ETF retirement guide says: “This is not a cost-of-living increase; it is an adjustment based on the investment results of the Core and Variable Trust Funds.” “Each year, ETF reviews investment results as of December 31.” ETF’s release adds: “the WRS does not guarantee annual annuity adjustments. Any adjustment is based on the level of assets within the Trust Funds.”
When annuities rise or fall
The release states: “By law, Core annuities will be increased if the annuity reserve surplus provides at least a 0.5% increase.” “Annuities will be reduced if a shortfall in this reserve would require at least a -0.5% adjustment.”
ETF’s retirement guide adds that “if you participate solely in the Core Trust Fund, your annuity payment will never drop below your final calculation” and says: “There is no limit to the amount the Variable portion of your annuity can be reduced.”
The May 2026 adjustment
ETF announced on March 6, 2026: “The Core annuity will grow by 2.1%, while the Variable annuity will be adjusted by 18%.” “Both adjustments will be made starting on retirees’ May 1, 2026, annuity payments.” The adjustments followed 2025 investment results of 14.4% for the Core fund and 22.0% for the Variable fund.
| Adjustment year | Core annuity | Variable annuity |
|---|---|---|
| 2024 | 3.6% | 15% |
| 2025 | 2.3% | 15% |
| 2026 | 2.1% | 18% |
Where 2027 stands
The May 2027 WRS annuity adjustment is not set: it depends on Core and Variable Trust Fund investment results as of December 31, 2026 (Core returns are recognized over five years, Variable returns annually), and this page updates when the Department of Employee Trust Funds announces it.
A worked example
As a computed illustration (not a source figure), a Core annuity of $2,000 (invented, for the computation) a month with the 2.1% adjustment of 2026 rises by $42 (computed) a month.
What this page does not cover
The Variable annuity applies only to participants who elected it. The older supplemental benefits under section 40.27 are not covered here, and a down year can reduce the Variable portion of an annuity or take back earlier Core increases.
Common mistakes
- Treating the annual change as a COLA. ETF says it is an adjustment based on investment results, not inflation.
- Assuming the adjustment cannot be negative. By law a shortfall of at least 0.5% reduces Core annuities, though ETF says a Core-only annuity never drops below its final calculation; the Variable portion has no such limit.
- Applying the Core percentage to a Variable annuity, which moves by a different percentage.
Related: Wisconsin WRS retirement decisions, how public pension decisions work, and whether Wisconsin taxes pensions.
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Answer againSources
- Wisconsin Department of Employee Trust Funds, Information for Retirees ET-4116: etf.wi.gov
- Wisconsin Department of Employee Trust Funds, WRS Retirement Annuity to Increase in 2026: etf.wi.gov
- Wisconsin Department of Employee Trust Funds, Annual Returns, Rates and Adjustments: etf.wi.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.