Guaranteed Annual Benefit Adjustment

TRS law provides for a modest annual benefit increase every January for eligible retirees and other eligible benefit recipients. Eligibility requirements are explained later in this section.

The percentage benefit increase depends on whether the TRS member retired as a Tier 1 member or a Tier 2 member.

Although similar to a cost-of-living adjustment (COLA) as applied to Social Security benefits, GABA increases are set in TRS law and are not keyed to external economic variables. 

Retirees whose TRS membership began prior to July 1, 2013 are Tier 1 members. If they had received at least 36 monthly benefit payments as of December 31, they are eligible for a 1.5% GABA increase in January and every year thereafter.

Retirees whose TRS membership began on or after July 1, 2013 are Tier 2 members. These members also must have received at least 36 monthly benefit payments to be eligible for the GABA increase the following year. However, the percentage of that increase will range from 0.5% to 1.5% as follows:

• The current GABA for Tier 2 members is 0.5% and may not increase if the funded ratio of the system remains below 90%, based on the results of the most recent actuarial valuation of TRS.
• If TRS achieves a funded ratio of 90% or higher, the Board may increase the GABA in 0.5% increments, up to a maximum of 1.5%. However, no increase may be applied if the most recent actuarial valuation indicates the benefit increase itself is likely to decrease the funded ratio below 85%.

Recipients who have received at least 36 monthly benefits as of December 31 will receive the GABA increase beginning with their next benefit, paid on the last business day of January. The GABA will be applied each January thereafter.

TRS will send each recipient a pay stub by mail indicating the GABA has been applied.