A Step Forward, but Far From Enough: Fighting for a Real COLA for Texas Retirees

After more than 20 years without a cost-of-living adjustment (COLA), some retired state employees will see a small increase in their pension checks starting in January 2025. Only about 30,000 retirees — just a quarter of all ERS beneficiaries — will receive this adjustment, leaving most still struggling to keep up with rising costs. This one-time boost, approved by the Employee Retirement System of Texas (ERS) Board, is a long-overdue step, but it falls short of what Texas retirees deserve. 

We are calling on the Legislature to use this momentum to make a much-needed across-the-board COLA to support all State of Texas retirees in the next legislative session. 

State retirees spent their careers making Texas safer and stronger, yet inflation has eroded the value of their pensions. Since the last adjustment in 2001, the cost of living has risen by 76%. The average pension payment is just $1,832 a month, or about $21,985 a year—not a lot to live on when inflation continues to chip away at your purchasing power. Many retirees have spent their lives contributing to this pension system, only to find their retirement income eroded by rising costs.

While other public-sector retirees, such as teachers, have received multiple increases in recent years, state retirees continue to wait. 

For the first time in two decades, the ERS fund is now “actuarially sound,” with $39.1 billion in assets. This financial stability enabled the small COLA for a quarter of ERS beneficiaries. More importantly, it has created an opportunity for lawmakers to deliver a permanent, across-the-board adjustment for all retirees.

This one-time COLA is a step forward, but the fight isn’t over. Now is the time to demand action. Together, we can ensure Texas retirees’ service to the state is honored with the retirement security we deserve.