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. 

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.

Spring break and Financial Literacy month are here! This is the perfect time to clean your closets and set some fresh retirement goals. If you haven’t set goals for retirement yet, start now by making some simple changes. Get that satisfying feeling a well-organized closet can give you. Here are eight things you can do to be better prepared for retirement. Even if you apply only one of these, your future self will look back and thank your present self. If you’re a school employee, find out about the difference between retiring in July vs September. And be sure to see the list of webinars in April. Automate everything The easiest and most effective way to save is automatically. Start by setting a goal for how much you would like to save each month. Then, set up a monthly transfer from your checking to your savings account. Most utility bills can be automated. You can also set up automatic payments for your credit card to avoid late fees. Increase your DCP contribution If you have a DCP account with the state of Washington, consider increasing your monthly contribution amount by 1 or 2 percent. For example: if you’re currently contributing 3% of your salary, bump it up to 4%. Your future self will thank you. While you’re at it, automate your DCP increases online and you’ll be glad you did. You can use the DCP calculator to see how much your contributions could grow. A small change can make a big difference over time. Not sure how much to save? Get started with the Retirement Planner. Estimate your retirement benefit Even if you just started your career in public service, you can use the DRS Benefit Estimator tool to get an idea of your retirement income. This calculator will allow you to see a preview of what your monthly income might look like. Log into your account and select “Benefit Estimator” to see your estimate. Knowing how much you can expect for retirement can help you make more informed retirement plans early on in your career. Read a finance book or listen to a money podcast The best way to reach your money goals is to hear what other people are doing. Find an interesting book, article or podcast about money. Fund Your Future with DRS is a podcast created for public employees in their 20s, 30s and 40s. Episodes are released on a regular basis and focus on easy things you can do to understand your money and improve your finances. Listen now. Talk about your finances Society often tells us that it’s impolite to talk about money. But in reality, asking advice or sharing money tips can open up new possibilities. Try having a conversation with your spouse, siblings, your kids, or your grandkids. Talk about what’s helped you in your financial journey and know that it’s ok not to have all the answers. The important part is that you explore the topic together. Know where you stand If you have any outstanding debt, take some time to know how much you owe – especially when it comes to credit cards. Write down what the APR (annual percentage rate) is for each credit card or loan. Generally, it’s a good idea to focus on paying down the debt with the highest APR first, and then consider increasing your savings or contribution to DCP. Track your spending Seeing where your money is going can help you understand the big picture. Do you already have a budget? That’s great! Take a moment to review your expenses from last month and see if you want to make any changes to your purchases this month. Get started with the Voya budget calculator. Set some financial goals Would you like to buy a house? Go on a cruise? Pay off your debts? Set short-term and long-term goals. Then, make a plan for how you’re going to meet those goals. Spring break webinars – getting ready to retire If you’re thinking about retiring in the next few years, now is the perfect time to dig in and find out more. Sign up for a free webinar this April. Find specific information for your plan, including how to withdraw from your DCP savings and how to pick a benefit option. Should I attend a webinar or a seminar? Webinars Webinars are 30 to 60 minutes and focus on one topic. They are online so you can attend from the comfort of your own home. Some webinars focus on retirement, while others are for those who are starting their career. These live sessions generally have a smaller group and allow time for your questions. Webinars in April DRS webinar schedule – See the full schedule. Seminars Designed for customers who are approaching retirement, the retirement seminar is a half-day program running from 9:00 am – 1:30 pm with several breaks. Currently available online. The sessions cover everything you need to know about getting ready to retire including how to apply, what to know about social security and health care. DRS seminar schedule – See the full schedule Online resources Watch this video about resources available to you on the DRS website: Video highlights: 3:50 – How to access your online account 7:45 – Using the benefit estimator 10:15, 15:55 and 20:45 – DRS calculators 18:20 – Annuities More resources: Videos from DRS Financial wellness video library from VOYA America Saves – A nonprofit that encourages and supports low- to moderate-income households to save money, reduce debt and build wealth.

During the 2026 session, DRS tracked bills that affected retirement, including pensions and benefits. Here are bills tracked, including summary descriptions from legislative reports: [table id=426 /] Bills marked with an asterisk (*) have passed, and bills with two asterisks (**) have been passed into law.