TVARS has announced the following 2026 information of interest to employees and retirees.
Cost-of-living adjustment (COLA) for 2026
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 Jan. 31, 2026.
Interest Crediting Rates for 2026
Cash balance (pension) accounts receive interest credits on a monthly basis and Fixed Fund (annuity) accounts receive interest credits on a daily basis. The annual interest crediting rates are set for each calendar year according to formulas in the TVARS Rules.
- For employees with cash balance accounts who were hired prior to Jan. 1, 1996, the interest rate for 2026 will be 6%.
- For employees with cash balance accounts who were hired on or after Jan. 1, 1996, the interest rate for 2026 will be 4.75%.
For Fixed Fund accounts, the interest rate for 2026 will be 4.75%