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CalPERS outlines cost‑of‑living and pension protection adjustments for retirees
Summary
Yvonne Walker said most CalPERS retirees will receive a 2% cost‑of‑living adjustment on May 1; certain retirees who retired in earlier date ranges may receive a 2.95% pension protection adjustment (PPA).
Yvonne Walker, a CalPERS board representative, told members the system’s annual cost‑of‑living adjustment (COLA) will appear on the May 1 pension payment for most recipients and summarized how Pension Protection Adjustments (PPA) apply to older cohorts.
Walker said “most of the 98% of the people who receive a pension from CalPERS … will get a 2% COLA.” She explained state retirees’ COLAs are set by law at 2% and that many school retirees also receive 2% based on negotiated terms.
Walker described the PPA, which she said was intended for people who retired in earlier decades and who otherwise lost purchasing power: “that was put into place for people who retired 20 to 30 years ago … anybody that retired from … 1965 to 1986” for state and school retirees she said would see a 2.95% adjustment; she said contracting agencies’ eligible retirement dates run to 1989 and are eligible for the same 2.95% figure.
Why it matters: COLA and PPA affect monthly benefit amounts for most retirees, particularly those who retired several decades ago and whose fixed benefits lost purchasing power.
Walker also noted ongoing work on health‑care transitions that may affect members' out‑of‑pocket costs and choices, but she said COLA and PPA timing remains as described.
Ending: Walker encouraged members with questions about specific payments to consult CalPERS member communications and stakeholder relations for details about their individual cases.
