This May, all CalPERS retirees who retired in 2022 or before will receive a bump in their retirement check through a cost-of-living adjustment (COLA). The COLA takes effect the second calendar year after retirement to help retirement benefits keep up with the rate of inflation.
Eligible retirees, beneficiaries, and survivors who receive a monthly benefit will receive the COLA in their May 1, 2024, retirement check. Most state and all school agencies contract for a 2% COLA provision, while public agencies may contract for a 2%, 3%, 4%, or 5% COLA provision. 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 2024 COLA percentage is determined by the annual rate of inflation measured by the Consumer Price Index (CPI), which was 4.12% for 2023. This year’s 4.12% inflation rate will be used to calculate the 2024 COLA for CalPERS retirees.
Find more details about your 2024 COLA, how it’s calculated, and frequently asked questions on our website.
Check Out a One-Minute Video on COLA
For a one-minute overview, watch our CalPERS Quick Tip: Cost-of-Living Adjustment video.