CalPERS retirees to receive cost of living adjustment starting May 1

The California Public Employees Retirement System (CalPERS) announced an important update for retirees during a recent meeting. Starting May 1, retirees will see a cost of living adjustment (COLA) included in their monthly retirement checks, providing them with increased financial support.

The COLA amount varies for each retiree and is determined by several factors, including the annual inflation rate based on the consumer price index, individual employer contracts, and the year of retirement. This adjustment is designed to help retirees keep pace with rising living costs.

One of the key benefits of the COLA is its compounded growth over time. For instance, a retiree receiving a $3,000 monthly pension with a 2% COLA could see their monthly income increase by nearly 50% over 20 years, amounting to an additional $1,370 per month.

Retirees are encouraged to check their COLA amounts through their myCalPERS accounts, where they can also ensure their personal information is current. For those who have not yet created an account, now is an opportune time to sign up.

This COLA adjustment is a significant step in enhancing the financial well-being of California's retirees, ensuring they have the necessary resources to manage their expenses in an evolving economic landscape.