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PERS 1, TRS 1 one-time benefit increase takes effect in July

Posted on April 7, 2026

As a result of legislation approved in 2026, certain retirees in Plan 1 of the Public Employees’ Retirement System and Plan 1 of the Teachers’ Retirement System (PERS 1 and TRS 1) will receive a one-time benefit increase in July 2026.

Under the law, 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. The increase applies to PERS 1 and TRS 1 retirees receiving a monthly benefit on or before July 1, 2025.

The adjustment does not apply to retirees who already qualify for an annual increase in 2026 through one of the existing minimum benefit provisions provided by the plans.

The one-time increase will be reflected in retirement benefits paid at the end of July.

Plan 1 benefit increase: Frequently Asked Questions

What is SB 5862?

SB 5862 was passed by the Legislature and signed into law by the governor during the 2026 legislative session. It provides a one-time, permanent increase of 3% (capped at $110.00 per month) to the monthly pension benefit of Public Employees Retirement System (PERS) Plan 1 and Teachers’ Retirement System (TRS) Plan 1 retirees.

Who will receive the increase?

PERS Plan 1 and TRS Plan 1 retirees who were receiving a monthly benefit on July 1, 2025 will receive this one-time increase. However, there are certain exceptions.

Who will NOT be eligible for this increase?

TRS Plan 1 retirees who are currently receiving a Temporary Disability retirement benefit
PERS Plan 1 retirees currently receiving a Duty Disability Retirement
Plan 1 retirees who will receive a Benefit Minimum Increase or an Adjusted Minimum Benefit COLA, as these benefits receive a separate annual increase
Plan 1 Legal Order Payees who were not granted COLA eligibility in their Legal Order documents

Note: This is not a complete list. Please see SB 5862 for specifics.

If I’m eligible to receive this increase, how much will it be?

The increase will be 3% (capped at $110.00) per month.

When will I see the increase in my benefit?

The increase will be reflected in your pension payment at the end of July.

If I purchased service credit or an annuity, will those increases be included in this benefit increase calculation?

Yes.

If I chose the Auto COLA or the Age 65 COLA, how will these be impacted by this increase?

If you selected the Auto COLA or Age 65 COLA, you will receive those increases first. Then the one-time permanent 3% increase will be calculated based on your adjusted benefit.