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 2025 COLA percentages by retirement date and plan. When will I receive the 2025 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. 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.

Member contribution rates have been approved by the legislature and signed by the governor for the 2025-2027 biennium. Rates for most plans are effective on July 1, 2025. Rates for TRS and SERS will go into effect on Sept. 1, 2025. 2025-2027 member contribution rates [table id=402 /] Member and employer contribution rates for Washington’s retirement systems are established every two years. Rates for most retirement plans are approved by the Washington State Pension Funding Council; rates for the Law Enforcement Officers’ and Fire Fighters’ (LEOFF) Retirement System Plan 2 are approved by the LEOFF Plan 2 Retirement Board. The rate your employer pays isn’t reflected in your online account. However, you can see what employers pay overall, including historical data, on the employer website. For more information, see Member Contribution Rates.

Thinking about returning to work after retirement? Keep in mind there are rules that apply to DRS retirees if you wish to return to work and continue receiving your retirement benefit. If you return to work for a non-DRS employer: Your benefit is not affected.Examples of non-DRS employers include local businesses like a coffee shop or grocery store.  If you return to work for a DRS employer: Your benefit could be affected.Examples of DRS employers include Schools, Police, Fire, Department of Transportation. The rules that cover returning to work after retirement vary based on your plan, but in most cases, you cannot work more than 867 hours in a calendar year for a DRS-covered employer if you wish to continue receiving your retirement benefit. There are exceptions to this, however. For example, if you are a licensed nurse you can work up to 1,040 hours per calendar year. Likewise, if you return to work for a school district, you may be able to work up to 1,040 hours per calendar year and still receive your retirement benefit. There are rules around each of these exceptions. You can find out more here. If you are considering returning to work, be sure to check out the specific rules for your retirement plan. You can find out more on the following DRS website pages: Returning to work Return to work exceptions

Unclaimed funds are money or assets that are owed to you that you didn’t collect or that didn’t get refunded to you. Retirement contributions If you’re a former a public employee but didn’t become vested, you may have money remaining in your retirement account. Use the DRS inactive accounts search tool. If you’re still employed in state service, check your balance anytime through your online account. State funds and property The Washington State Department of Revenue (DOR) has a site where you can check to see if funds or assets are being held in your name. Use their search tool to search your name or a friend or family member’s name. They may thank you for finding their lost money! A representative from DOR shared on the DRS podcast the average refund is about $130. Funds can come from many places, but common examples are: Refunds Old bank accounts Insurance proceeds Utility companies Uncashed checks such as payroll, insurance payments, or travelers checks Security deposits Stocks, bonds and mutual funds Safe deposit box contents Federal unclaimed funds Funds can also be held at the federal level, and you can check for money owed to you by different agencies by following the links on this website. The site has links for unclaimed funds from the Internal Revenue Service (IRS), the Veterans Administration (VA), FHA insurance refunds, unpaid wages, and pensions from former private employers. Prefer to listen? Tune in to the podcast episode