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Model Order C Calpers Edit Form

Model Order C Calpers Edit Form

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Hi, I’m Sango, and in this CalPERS Quick Tip, we’re going to cover the Cost-of-Living Adjustment, and how it impacts your pension. The Cost-of-Living Adjustment, or COLA, is a benefit that ensures your value of money at retirement keeps up with the rate of inflation. Beginning the second calendar year after you retire, you may receive an annual COLA effective in May of each year. Your COLA amount is based on the following: First, the annual rate of inflation. Second, your employer-contracted COLA provision, between 2 and 5 percent. And third, the year you retire. The rate of inflation and your COLA provision amounts compound annually, so your COLA calculation is unique to you and isn’t based on a flat rate each year. To learn more about COLA, visit calpers.ca.gov/cola.

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