CalPERS retirees will get a cost of living increase this year. Here’s how much

CalPERS retirees will get a small bump in their pensions this year since the price of consumer goods increased last year despite the coronavirus pandemic.

The consumer price index increased by 1.23% for 2020, which means the pensions of most CalPERS retirees will increase by 1.23% or 2% in May, according to a chart published by the retirement system.

Any increase over 1% triggers a cost of living increase for public retirees in the state, whose pensions average $37,000 per year.

In total, this year’s increases will cost the state $242 million, according to CalPERS. The system is expected to pay about $27.6 billion in annual benefits this year to about 700,000 state and local government retirees, beneficiaries and survivors.

Those who retired in 2003 or earlier will get a 2% COLA increase. Those who have retired since then will receive a range of increases between 1.23% and 1.81%, depending on the year they retired.

More than 95% of retirees receive either the prior year’s increase or 2%, according to CalPERS.

Employees who retired before 1979 will receive a 3% increase, and a handful of other employees will receive increases of up to 5%.

Those who retired in 2020 won’t receive a COLA until next year.

This story was originally published March 10, 2021 at 5:25 AM with the headline "CalPERS retirees will get a cost of living increase this year. Here’s how much."