For 2026, the COLA for eligible retirees and beneficiaries will be 2.5%.
The TVARS Rules and Regulations (TVARS Rules) provide that eligible retirement benefits (pension and supplemental benefits) will receive a COLA benefit based on a formula using the Consumer Price Index – All Urban Consumers (CPI-U). This index, maintained by the U.S. Labor Department, measures the price changes in a broad group of various goods and services purchased by consumers.
The COLA is calculated as the percentage change in the average CPI-U for the period of November 2023 – October 2024 to the period November 2024 – October 2025 (2.75%) minus 0.25%. Eligible retirees and beneficiaries will see an increase in checks beginning January 31, 2026.