Guaranteed Annual Benefit Adjustment (GABA)

The Guaranteed Annual Benefit Adjustment (GABA) is a way to adjust your benefit payment for inflation. When eligible, members will automatically receive this increase in their monthly benefit payment each January. These terms are guided by Montana law.

Prior to January 1, the recipient must receive 36 monthly benefit payments.

 Tier 1 members/benefit recipients: 

• Every January 1, the monthly payment will automatically be increased by 1.5%.

 Tier 2 members/benefit recipients:

Determined after the results of the yearly actuarial valuation, the increase will be:

• 0.5%: if TRS liabilities are less than 90% funded.
• 0.5% to 1.5%: when TRS liabilities are more than 90% funded, the Board will decide the increase amount. This increase must not be expected to cause the system's liabilities to be less than 85% funded. 

 Tier 1 members (hired before July 1, 2013) receive an increase of 1.5% per year.

Tier 2 members (hired July 1, 2013 or after) receive an increase of 0.5% per year.
This amount can be increased by 0.5% increments up to 1.5% by the TRS Board if the most recent valuation shows the System to be 90% funded and the increase will not cause the funded ratio to be less than 85%.

The most recent valuation, 2023, found TRS was 72.49% funded