Cost of Living Adjustments (COLA)

TMRS participating cities may provide a cost-of-living adjustment (COLA) that can increase your monthly retirement benefit.

Does my city provide a COLA?

To find out if your city provides a COLA, go to the “For Members” tab on tmrs.com, click on Plan Design, and search for your city. A city may offer either a repeating COLA or an ad hoc COLA. A repeating COLA is paid every year. An ad hoc COLA is only paid if the city decides to pay it in any given year. 

If my city provides a COLA, am I eligible to receive it?

If your city provides a COLA, you must be retired for at least one year to receive it.

If I am eligible to receive a COLA, how much will it be?

TMRS calculates COLAs every January by using the Consumer Price Index (CPI) to determine the rate of inflation since you retired. A city’s COLA may either be 30%, 50% or 70% of the change in the CPI. Because the calculation is complicated, there is a TMRS COLA Calculation Fact Sheet that explains it in detail. To see it, go to the “For Retirees” tab on tmrs.com and click on Fact Sheets.

Are COLA payments guaranteed?

No. A COLA is not guaranteed. A city may discontinue its COLA at any time.

Can a city change its COLA percentage?

Yes. A city can increase or decrease its COLA percentage at any time.

This information is also available as a fact sheet.