A cost-of-living adjustment (COLA) is an annual adjustment applied to your retirement income to reflect changes in the economy (inflation). Most DRS retirement plans offer a COLA, but Plan 1 members in PERS and TRS only have a COLA if they selected it during retirement. View the 2026 COLA percentages by retirement date and plan. When will I receive the 2026 COLA? LEOFF Plan 1 COLAs take effect April 1 and start with April 30 benefit payments. All other DRS Plan COLAs take effect July 1 and start with July 31 benefit payments. You need to be retired by July 1 for at least one year to be eligible for a COLA. Once you’re eligible, you’ll receive any COLA starting with the pension payment issued at the end of July, and every year after. You don’t need to apply to receive the COLA, it’s automatic. How much will the COLA be? 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 (called COLA banking). Any year inflation is lower than 3%, the COLA can pull from banked amounts in prior years. This happens automatically and the adjustment is made for you. You could receive a different adjustment each year, depending on the amount available in your COLA bank. View the 2026 COLA percentages. Will PERS 1 and TRS 1 receive a benefit increase? If the legislature changes the current law, most of these retirees could receive a one-time increase in July. There are several bills that could affect this decision. You can track all bills here.

It can be difficult to determine the steps to get ready for retirement. This simple timeline highlights key steps to help you stay on track. Some retirement plans like LEOFF and WSPRS allow for a full retirement benefit at age 53 or 55. PSERS uses age 60. Others, like PERS, TRS, and SERS, use age 65 as the normal retirement age. At age 60, or five years out: Attend a Nearing Retirement Seminar online. Learn when and how to request an estimate, restore or purchase service credit, and explore ways to increase your income with annuity options. Explore your annuity options. An annuity provides guaranteed monthly income in addition to your pension, and it has a cost-of-living adjustment (COLA). Plan 3 members have an additional option to consider called a TAP annuity. Plan for health care. Explore your options and decide when to apply for Medicare and Social Security. Your employer may have helpful guidance. You can also contact:PEBB – If you have PEBB or SEBB healthcare, you can enroll in PEBB retiree healthcare when you retire. Contact the Health Care Authority to learn more.VEBA – Voluntary Employees Beneficiary Association. They provide a Health Reimbursement Arrangement (HRA) which is an account you can use to reimburse your out-of-pocket health care expenses. Check with your employer to find out if they offer VEBA. SHIBA – Statewide Health Insurance Benefits Advisors. Trained volunteers who can answer your Medicare questions. At age 50, or 15 years out: Consider increasing your DCP contribution. Once you turn 50, you can contribute a higher annual limit to DCP. You can also contribute up to twice the maximum during the three years before retirement.  Use the Benefit estimator in your online account. By answering a few simple questions, this tool will allow you to see what your monthly income might look like. Log in to your online account and select Benefit Estimator to get started. Any time before age 50: Review your service credit. Check your service credit total in your online account, especially if you have taken time off for illness, injury, military duty or a sabbatical. You may be able to restore missed credit, but deadlines and costs vary. Sign up for Washington’s DCP. If you already have an account, increase your contribution. Your pension is designed to replace about 50% of your income, so additional savings can make a big difference. You can choose your own investments or have them professionally managed. Update your beneficiaries. Life moves quickly and changes such as marriage, divorce or growing your family can affect who you want to name as your beneficiaries. Make sure your account reflects your current wishes.

At the end of July, state employees may notice a 2% increase to their paycheck. This increase is thanks to legislation that passed in April 2025 and is intended to help you with the cost of inflation. One of the best things about getting a paycheck increase is that it gives you more flexibility with your budget. Use the extra money to:  pay off credit card debt save for a big vacation open an account or add to your child’s 529 college savings fund increase your DCP contributions for retirement Are your spare dollars working for your future? Whether you are already saving for retirement or just getting started, Washington’s Deferred Compensation Program (DCP) can help you build additional income for your future goals. Most people choose to contribute to DCP with a percentage of their paycheck. And 3% is the default for those that start with DCP. But if you think you can spare a few more pennies per dollar, make that increase to your DCP now. Think of 10% of your salary as just 10 cents per dollar. Watch this 3-minute video to see an example: Don’t have an account? It only takes 3 minutes to enroll online. How to change your contributions: Log in and select your DCP account At the Voya main menu select Accounts and then Washington State DCP Select Contributions & Savings, then Manage Contributions The page will show your current contribution rate. Select Update My Contributions to make the change. Log into your account Got a few minutes? Listen to the DCP podcast episode This short episode explains how taxes are applied, the importance of contributing with a percentage of your income and tools for maximizing your investment. You can also read a transcript of the episode. Subscribe for more DRS news

Administrative Factors for 2027 are now available. These factors will apply to new retirements with an effective date of Jan. 1, 2027, or later. Administrative factors are determined by the Office of the State Actuary and are based on demographic and actuarial data. DRS uses administrative factors to calculate benefit adjustments. These adjustments are applied in certain situations such as early retirement, adding a survivor and purchasing service credit. You can view the new factors and find more information on the Administrative Factors page on the DRS website. You can also access a spreadsheet of the 2026 factors that remain in effect through Dec. 31, 2026, on this same page. More news