Alaska Cost-of-Living Allowance (COLA)
+10%
of your base benefit, while you live in Alaska. Tier I from retirement (per DRB); Tier II from 65; disability at any age.
Handbook (2011), pp. 21-22, Cost-of-Living Allowance; Retirement booklet (June 2023), p. 2; p. 27, Alaska Cost-of-Living Allowance; Seminar handout (Jan. 6, 2025), slide 29Post Retirement Pension Adjustment (PRPA)
Each July 1
Tied to Anchorage inflation. Paid wherever you live, from 60 or after 8 years of payments.
Handbook (2011), p. 22, Post Retirement Pension Adjustment; Ad Hoc PRPA; Retirement booklet (June 2023), p. 27; Seminar handout (Jan. 6, 2025), slide 29Short answer: Alaska TRS has two after-retirement increases. The Alaska COLA adds 10% of your base benefit while you live in Alaska (Tier II from age 65). The PRPA is a yearly raise tied to Anchorage prices. Neither is in the calculator's monthly figure. If you're choosing a survivor option, see how increases carry over on payment options; Tier II retiree medical starts free at 60 (see retiree medical).
The Alaska COLA
10% of the base benefit, paid monthly while you are domiciled and physically present in Alaska. Tier I recipients and their survivors are eligible at retirement; Tier II recipients and survivors at age 65; disability recipients at any age. An absence over 90 consecutive days (6 months with a physician's order) breaks residency. You must apply; a property tax exemption or other residency-based benefit in another state disqualifies you. Handbook (2011), pp. 21-22, Cost-of-Living Allowance; Retirement booklet (June 2023), p. 2; p. 27, Alaska Cost-of-Living Allowance; Seminar handout (Jan. 6, 2025), slide 29; AS 14.25.142; 2 AAC 36.210
Our illustration: on DRB's $3,187.50 example benefit, the Alaska COLA adds $318.75 a month. The PRPA isn't figured on the COLA. AS 14.25.143(b)
DRB's handbook, booklet and plan chart say Tier I retirees living in Alaska get the 10% Alaska COLA from the start of retirement. The statute as printed (AS 14.25.142(a)) says only recipients 65 or older or on disability. We follow DRB's publications.
Handbook (2011), p. 22; Plan Comparison Chart (Rev. 1/20), p. 2; AS 14.25.142(a)
DRB publications say Tier I recipients get the Alaska COLA at retirement, but AS 14.25.142(a) as printed limits it to recipients 65 or older or on disability. The Tier I right presumably comes from an uncodified 1990 provision (the section history lists am Sec. 11 ch 97 SLA 1990).
We follow the DRB publications: Tier I retirees living in Alaska get the 10% Alaska COLA from retirement.
What would settle it: Ch. 97, SLA 1990, or DRB confirmation.
The 90-day rule: DRB's example
| Left Alaska | Came back | Days | COLA |
|---|---|---|---|
| September 1, 2022 | November 30, 2022 | 90 | Keeps it |
| September 1, 2022 | December 1, 2022 | 91 | Stops (overpayment) |
With a doctor's order the limit is 6 months.
The PRPA
Each July 1, based on the Consumer price index for urban wage earners and clerical workers (CPI-W), Anchorage, previous calendar year:
| Who | Share of the increase | Most it can be |
|---|---|---|
| Age 65 or older on July 1, or receiving Alaska TRS disability | 75% | 9% |
| Age 60-64 on July 1, or under 60 and receiving benefits at least 8 years | 50% | 6% |
Recipients who were not paid for the whole preceding calendar year get the increase times (months paid / 12). Tier I recipients are also eligible for ad hoc PRPAs (only if the fund exceeds 105% of what is needed); if both are granted they get the larger.
No recent PRPA percentages are in the saved sources, so the COLA projection takes a CPI assumption.
We describe how the PRPA works but show no percentage for any year, because the sources give none.
What would settle it: DRB's PRPA announcements for July 2025 and July 2026 (Anchorage CPI-W).
The DCR plan (Tier III) has no Alaska COLA or PRPA. Plan Comparison Chart (Rev. 1/20), p. 2
The facts
- Alaska TRS retirees can get two kinds of increase: the Alaska Cost-of-Living Allowance (an extra 10% of your base benefit while you live in Alaska) and the Post Retirement Pension Adjustment (PRPA), an inflation increase paid wherever you live.Handbook (2011), pp. 21-22, After-Retirement Benefit Increases; Retirement booklet (June 2023), p. 27
- The 10% Alaska COLA starts at retirement for Tier I and at age 65 for Tier II (any age on disability). You must apply, and live in Alaska: an absence of more than 90 days in a row (six months with a doctor's order) stops it. Leaving Sept. 1 and returning Nov. 30 (90 days) is fine; returning Dec. 1 (91 days) is an overpayment.Retirement booklet (June 2023), p. 2; p. 27, Example of 90-day rule; AS 14.25.142
- The PRPA is set each July 1 from the prior year's Anchorage consumer price index: 75% of the increase (max 9%) if you are 65 or older or on disability; 50% (max 6%) if you are 60-64, or younger but receiving benefits for at least 8 years. It is prorated if you were not paid all of the prior calendar year.Handbook (2011), p. 22, Post Retirement Pension Adjustment; AS 14.25.143
- The DCR plan (Tier III) has no Alaska COLA or PRPA.Plan Comparison Chart (Rev. 1/20), p. 2
The calculator shows when you'd qualify for each.
Questions
What is the Alaska COLA?
An extra 10% of your base benefit, paid while you live in Alaska. Tier I gets it from retirement (per DRB) and Tier II from age 65. You must apply.
How long can I be out of Alaska?
Up to 90 days in a row (6 months with a doctor's order). Leaving September 1, 2022 and coming back November 30, 2022 (90 days) is fine; coming back December 1, 2022 (91 days) breaks residency.
What is the PRPA?
The Post Retirement Pension Adjustment: a July 1 increase tied to the prior year's Anchorage inflation, paid wherever you live. 75% of the increase (up to 9%) at 65 or older; 50% (up to 6%) at 60-64 or after 8 years of payments.
Source: Alaska Teachers' Retirement System Information Handbook (Tiers I and II), 2011 edition (current on drb.alaska.gov), checked against the TRS Retirement Application Instruction Booklet (June 2023), pp. 21-22. Also: Retirement booklet (June 2023), pp. 2, 27; Seminar handout (Jan. 6, 2025), slide 29; Plan Comparison Chart (Rev. 1/20), p. 2; 2 AAC 36 (regulations); AS 14.25.142, 14.25.143. Last reviewed .