NC TSERS Cost-of-Living Adjustment for Survivors: How COLA and Supplements Work

A monthly survivor pension from TSERS does not automatically increase with inflation. North Carolina has no standing cost-of-living adjustment built into the pension formula. Instead, any increase depends on the state legislature approving a one-time supplement or a permanent COLA — and that happens only when the General Assembly decides the budget allows it.

How Legislative Supplements Work

Rather than a permanent annual COLA, North Carolina has historically authorized one-time supplemental payments through the biennial budget process. These supplements are paid to everyone on the retirement rolls as of a specific qualifying date, including survivors receiving monthly pension payments under Options 2, 3, 6-2, or 6-3 and the Survivor's Alternate Benefit.

Recent examples:

• 2024: A 3.0% one-time supplement disbursed by November 30, 2024, to beneficiaries on the rolls as of October 1, 2024
• 2025: A one-time supplement disbursed between September 1 and October 31, 2025, for beneficiaries retired on or before September 1, 2025
• 2026: A one-time supplement included in the October 23, 2026 monthly benefit check, with regular benefit amounts resuming in November

These are not permanent increases. The monthly benefit returns to its base amount the following month. A survivor whose monthly pension is $1,400 might receive $1,442 in the supplement month, then return to $1,400 the next month.

Who Qualifies

Survivors receiving a monthly TSERS pension can qualify for legislative supplements, but each law sets its own eligibility rules. If a survivor claim is still pending on the applicable qualifying date, ask RSD whether the eventual benefit will qualify before relying on the supplement.

Survivors who receive only a lump-sum payment (Return of Contributions, Guaranteed Refund, or Contributory Death Benefit) do not qualify for ongoing supplements because they are not on the monthly rolls.

Permanent COLAs Are Rare

The North Carolina General Assembly has authorized permanent COLAs only a handful of times in the past two decades. When a permanent COLA is enacted, it increases the base monthly benefit going forward — a meaningfully different outcome from a one-time supplement that appears once and disappears.

The absence of automatic COLAs is one of the most significant long-term financial risks for TSERS survivors. A surviving spouse who begins receiving a $1,400 monthly pension at age 55 will still receive roughly $1,400 at age 75 unless the legislature acts. At 3% annual inflation, that $1,400 buys about $775 worth of goods 20 years later.

What Survivors Can Do

There is no action required to receive a legislative supplement — if you are on the rolls, RSD includes the supplement in your payment automatically. Check your direct deposit or paper check in the months following a legislative authorization to confirm the supplement appeared.

For long-term planning, do not build a budget that assumes regular increases. The supplements have been frequent in recent years, but they are discretionary legislative decisions, not guaranteed benefits. Factor inflation into your financial plan independently.

If you are just beginning to navigate the TSERS survivor claim process, our NC TSERS Survivor Benefits Guide covers every payment type available to survivors and the timeline for each — so you know exactly what to expect before, during, and after the claim.

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