CalPERS discusses 2024 retiree COLA adjustments amid inflation concerns

In a meeting filled with discussions about the future of healthcare and retirement benefits, the CalPERS Board gathered on March 18, 2025, to address critical updates that could impact thousands of California public employees and retirees. The atmosphere was charged with anticipation as board members and staff shared insights on new healthcare initiatives and the annual cost of living adjustments (COLA) for retirees.

One of the key highlights of the meeting was the introduction of Intuitive Health, a new population health management program aimed at enhancing care coordination for members. Board members expressed optimism about this transition, noting that it could lead to improved health outcomes through better engagement with primary care providers. The focus on continuity of care was emphasized, with discussions surrounding the importance of addressing various health conditions, from chronic illnesses to mental health screenings. The board is eager to see data reflecting the effectiveness of these changes, with a report expected in June.

As the meeting progressed, Kimberly Pulido, the division chief of retirement benefit services, presented the annual COLA update. This year, eligible retirees will see an increase based on a 2.95% inflation rate, as measured by the Consumer Price Index. The COLA adjustments, which will be reflected in retirement checks starting May 1, are crucial for maintaining the purchasing power of retirees, especially those who have been retired for decades. Pulido highlighted that nearly 96% of retirees are contracted for a 2% COLA, while some may receive higher adjustments based on their specific agreements.

The board also discussed the Purchasing Power Protection Allowance (PPPA), designed to ensure that retirees maintain a minimum level of purchasing power. This allowance works alongside the COLA, providing additional financial support to those who may struggle with inflation over time.

As the meeting concluded, the sense of collaboration and forward-thinking was palpable. Board members expressed gratitude for the hard work involved in these transitions and the potential benefits they could bring to California's public employees and retirees. With a commitment to improving healthcare and financial security, the CalPERS Board is poised to make significant strides in the coming year, leaving many looking forward to the positive impacts of these initiatives.