CalPERS says cost-of-living adjustment will appear on May retirement checks
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Summary
The California Public Employees Retirement System announced that a cost-of-living adjustment (COLA) will be applied to May retirement payments; retirees should check their myCalPERS accounts for individualized amounts, which depend on inflation, employer contracts and year of retirement.
The California Public Employees Retirement System said a cost-of-living adjustment, or COLA, will be applied to retirement checks starting with payments issued in May.
That adjustment will vary by retiree. “The amount you receive is unique to you and depends on several factors,” a CalPERS staff member said, citing the consumer price index, employer contract terms and the retiree’s year of retirement as the determining elements.
CalPERS advised retirees to view their specific COLA amount in their myCalPERS account. The agency also said that COLA effects compound over time: in the example given, a retiree with a $3,000 monthly pension receiving a 2% COLA compounded annually over 20 years would end up with nearly 50% more, or about an additional $1,370 per month after that period.
For members who do not yet have an online account, CalPERS recommended signing up for myCalPERS to confirm personal information and view the COLA amount. The announcement repeated that the purchase and amount are individualized and urged members to verify their records online.
