COLA rates established for 2023
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 2023 COLA percentages by retirement date and plan.
When will I receive the 2023 COLA?
LEOFF Plan 1 COLAs take effect April 1 and start with April 29 benefit payments.
All other DRS Plan COLAs take effect July 1 and start with July 29 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 percentages 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.
Rumors. They sure can be wild at times. At DRS, it’s not unusual for us to speak with customers who have heard a rumor that, as it so often turns out, is not exactly accurate.
The 2023 Annual Comprehensive Financial Report (ACFR) reflects our on-going commitment to accurate and transparent financial reporting of the retirement systems.
Department of Retirement Systems recently learned of several email and phone schemes targeting public employees.