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.

DRS annuities are guaranteed income plans. They are in addition to your pension plan and not tied to market risk. Unlike some private annuities, you cannot outlive them, even if you’ve exhausted your balance. Once purchased, your DRS annuity will pay you monthly for the rest of your life. How much does an annuity cost? How much your monthly annuity payment will be depends on your plan, purchase amount and your age. For example, an age 65 PERS Plan 2 member with no survivor who purchases an annuity for $50,000 could expect to receive a $291 payment added to their pension for the rest of their life. Minimum buy-ins for annuities range from $5,000 to $25,000. To create an estimate, Log in to your online account and select Purchasing Annuity. Keep in mind that once you set up an annuity, you cannot change the income amount. Once you begin receiving payments, you cannot cancel the annuity. Annuities are taxable income. It’s important to speak with a tax advisor to understand how that may impact you. When does the average annuity “break even”? It takes an average of 10-15 years to break even on an annuity. It’s one thing you should consider when choosing to purchase. Other factors are your overall retirement picture and how long you expect to live. “Retirement looks a lot different today than in the past,” said Defined Contribution Plan Manager Malia Bonham. “Many folks are retiring while still paying a mortgage. If you’re on a fixed income, having a guaranteed income source may be the route that feels best.” Types of annuities DRS offers three types of annuities: a service credit annuity, plan annuities and a TAP annuity. Plan and TAP annuities offer survivorship options, COLAs (Cost of Living Adjustments) and a balance refund if you die before you’ve received your purchase amount in payments. Service credit annuity This annuity allows you to purchase up to 60 additional months of service credit. The increased monthly amount you receive will add to your pension, but it does not give you actual service credits, and you cannot use it to reach vesting status or to retire early. If you’re planning on returning to public service work after retirement, you’ll need to understand the return to work limits and how they may impact receiving your pension and annuity payments. A service credit annuity has the same survivor option and Cost of Living (COLA) adjustment as your pension and must be purchased at time of retirement. You can use your pretax DCP funds or cash to purchase it. If you have a DCP Roth balance, you can also take a cash withdrawal from your Roth balance to purchase this annuity. To create an estimate, Log in to your online account and select Purchasing Service. Plan annuity Plans 1, 2 and 3 for all retirement systems each offer their own annuity. Plan annuities offer the same survivor and Cost of Living (COLA) adjustment as your pension. Your beneficiary will receive a balance refund if you die before you (and your designated survivor) receive your purchase amount in payments. Plan annuities must be purchased at the time of retirement and can be purchased with your pre-tax DCP funds or through other approved funding sources. You’ll continue to receive these payments if you return to work. TAP annuity TAP annuities are only available to Plan 3 members. TAP annuities feature a guaranteed 3% yearly Cost of Living (COLA) increase. They offer the ability to extend your annuity payments to a survivor, and a balance refund if you pass before you (and your designated survivor) have been paid out your purchase amount. This TAP Annuity calculator can help you estimate your monthly income, including the annual 3% increase. When to purchase a TAP annuity TAP annuities can be purchased any time after you separate from employment but may only be purchased once per plan. You do not need to be retired or receiving a pension to purchase one. Payments can begin at any age and are paid separately from your pension, with the first payment typically issued within 90 days of purchase. Additional resources: Webinar: Purchasing an Annuity Podcast: All about the Plan 3 TAP Annuity Transcript for the podcast

Getting married is an exciting life milestone. It’s also a good time to review your retirement account. Whether you’re still working or already retired, marriage can affect your beneficiaries, survivor options and, in some cases, your pension benefits. Here’s what to know at each stage of your retirement journey. If you’re working and get married Marriage is a good reminder to review your retirement account and make sure your information is up to date. Update your beneficiaries. Review your beneficiary designations after getting married. Even if you want to keep the same beneficiary, names and addresses might need updating. Update this information through your online account. Keep your personal information current. If your name or address changes, update it through your employer so your DRS account stays accurate. Know what could happen if you die before retirement. Depending on your retirement plan and years of service, your surviving spouse or partner could have the option to inherit your account as pension payments. This option is available if you worked at least ten years in Plan 1 or Plan 2 or reached vested status in Plan 3. Contact DRS for information about eligibility and retirement timing. Read more about survivors. As you prepare for retirement If you’re married when you retire, one of your most important decisions is whether to choose a survivor benefit. A survivor benefit allows your spouse (or another eligible survivor) to continue receiving a monthly pension after your death. Choosing this option reduces the amount of your own monthly retirement payment, but it provides ongoing financial protection for your survivor. If you don’t choose a survivor benefit, your pension ends when you die. If any of your original retirement contributions remain, they are paid as a lump sum to your designated beneficiary. The rules for WSPRS Plan 1 are slightly different. Before you retire, take time to: Review your beneficiary designation. Learn about your survivor benefit options. Estimate how different survivor choices could affect your monthly pension. Explore scenarios using the benefit estimator tool in your online account. Spouse or domestic partner consent At retirement, you must get consent from your spouse, legally separated spouse or registered domestic partner if you: Choose the single life option. Name someone other than your spouse, legally separated spouse or partner as your survivor. Their consent confirms agreement with your selected benefit option and must include a notarized signature as part of your retirement application. Without a notarized spousal consent, your benefit may be delayed or reduced. If you get married after retirement Getting married after retirement may give you a one-time opportunity to add your new spouse as your survivor, which will lower your monthly benefit prospectively. To qualify, you must generally: Be married for at least one year. Request the change during your second year of marriage. (Washington State Patrol retirees have a different timeline.) If you miss this window, you may lose the opportunity to add your spouse as your survivor, so be sure to contact DRS after your marriage. If your name or address changes after retirement, you can update your information through your online account. If your survivor dies If you chose a survivor benefit and your survivor dies before you, notify DRS. Your monthly pension can be increased to the unreduced single-life amount because the survivor reduction no longer applies. You should also review and update your beneficiary designation if needed. If you divorce or legally separate Divorce can affect your retirement account. Your monthly pension is not divided unless required by a court order. In some cases, DRS may be required to divide retirement benefits as part of a property division order, awarding a portion of your retirement account to your former spouse. The award recipient would apply for retirement independent of your own retirement. More about marriage and divorce. You should also review and update your beneficiary designation after a divorce, even if you intend to keep the same beneficiary. If you have questions about how divorce may affect your retirement account, contact us. Beneficiaries and survivors: What’s the difference? These terms are often confused, but they serve different purposes. A survivor receives ongoing monthly pension payments after your death if you selected a survivor benefit when you retired. A beneficiary receives any remaining balance of your retirement contributions that hasn’t already been paid through pension benefits. If you have a Deferred Compensation Program (DCP) account, your DCP beneficiary receives the remaining balance of that account. More about beneficiaries and survivors. Review your account after any major life event Marriage, divorce and the death of a spouse are all recommended times to review your DRS account. Keeping your beneficiary information current and understanding your survivor options can help ensure your retirement benefits are distributed according to your wishes.

If you’re a new public employee, school employee or teacher, you have 90 days to choose between two retirement plans: Plan 2 or Plan 3. The decision you make is permanent, but don’t worry; we have the resources you need to help you select which plan is right for you. Choose a plan – See what customers say about why they chose one plan over the other. Plan choice webinar – Watch this recorded webinar for a 30-minute tour of both plans. Plan choice calculator – Compare the two plans with this tool. Reasons customers choose each plan Which plan is right for you? It really depends on your own journey toward financial independence. Fund your future podcast: Episode 14 – Choosing between Plans 2 & 3