Retirement Benefits

2021 Cost-of-Living Adjustment Coming in May 

We understand the importance of investing money

This May, all CalPERS retirees who retired in 2019 or earlier will receive an increase to their cost-of-living adjustment (COLA). This is a result of the Consumer Price Index for All Urban Consumers (1967 = 100)  that is 1.23%  for 2020.

The chart below shows the percentage of COLA increase that retirees will receive based on their employer-contracted COLA provision percentage and their retirement year. Most state and all school agencies contract for a 2% COLA provision, while public agencies may contract for a 3%, 4%, or 5% COLA provision.

COLA Provision Year of Retirement % COLA Increase Effective May 1, 2021
2% COLA Provision 2003 & Earlier 2%
2004 1.81%
2005-2015 1.23%
2016 1.62%
2017 1.49%
2018-2019 1.23%
2020 Not Eligible
3% COLA Provision 1979 & Earlier 3%
1980-2019 1.23%
2020 Not Eligible
4% COLA Provision 2019 & Earlier 1.23%
2020 Not Eligible
5% COLA Provision 2019 & Earlier 1.23%
2020 Not Eligible

For More Information 

For more details about how your COLA is calculated and frequently asked questions, go to Cost-of-Living Adjustment (COLA) on our website. You can also call us toll free at 888 CalPERS (or 888-225-7377) if you have questions.

Did You Know?

The COLA is a benefit that ensures your value of money at retirement keeps up with the rate of inflation. For a one-minute overview, watch our CalPERS Quick Tip: Cost-of-Living Adjustment video above.