ERS Board to take action related to COLA in December 2024 meeting

In its December meeting, the Employees Retirement System of Texas (ERS) Board of Trustees will review the actuarial valuation of the ERS Retirement Plan as of Aug. 31, 2024. Their findings will determine whether the Plan meets the statutory standard to grant a permanent, one-time cost-of-living adjustment (COLA) for regular service and law enforcement and custodial officer (LECO) retirees who have been retired 20 years or more as of Dec. 31, 2024. Eligible retirees’ monthly annuities would increase by 3% or $100, whichever is less, starting with their Jan. 31, 2025 payment. Surviving beneficiaries of regular service and LECO retirees who retired on or before Dec. 31, 2004 also will receive the COLA.

If the Board verifies that the Plan meets the standard for the COLA, ERS will implement it to comply with Section 814.604, Texas Government Code, enacted in 2013. ERS estimates that about one quarter of retirees and surviving beneficiaries, almost 30,000 people, will be eligible for the COLA. More than 90% of those eligible will get the full 3% increase. There are no provisions in statute to provide any other COLAs.

The Board meeting will be on Dec. 10 and 11. As always, ERS will livestream the meeting so people can watch from their computers or other devices. The full meeting agenda and livestream link will be available on the ERS website in early December.

ERS will provide more information about the COLA as it becomes available.