Retirement Benefits

2023 Cost-of-Living Adjustment Begins in May

7 months ago
Concentrated old woman in eyeglasses calculating utility bills or domestic expenditures, doing financial paperwork, paying for services or insurance using computer e-banking application alone at home.

This May, all CalPERS retirees who retired in 2021 or earlier will receive an increase to their cost-of-living adjustment (COLA). This is a result of the annual rate of inflation measured by the Consumer Price Index (CPI-U) that was 8% for 2022. 

Most state and all school agencies contract for a 2% per year COLA, and public agencies can contract for a 2%, 3%, 4%, or 5% per year COLA. Currently, 95% of CalPERS retirees have a 2% COLA.

Over the last 40 years (1983-2022), the inflation rate has averaged 2.82% and the long term (1965-2022) inflation rate has averaged 4.02%. The 8% inflation rate this year will be used in calculating the 2023 COLA for CalPERS retirees and will be reflected on your May 1, 2023, retirement checks. 

How Much Will Your COLA Be?

Find more details about your 2023 COLA, how it’s calculated, and frequently asked questions on our website. 

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, access our CalPERS Quick Tip: Cost-of-Living Adjustment video.