CalPERS has announce the follow Cost-of-Living Adjustment for California State University retirees for 2021:
|Year of Retirement||% COLA Increase Effective May 1, 2021|
|2003 & earlier||2%|
To calculate the COLA for CSU retirees, CalPERS uses the following four steps:
- Step 1
CalPERS calculates the rate of inflation, based on retirement year.
(Current Year CPI - Retirement Year CPI) / Retirement Year CPI = Rate of Inflation
- Step 2
CalPERS calculates the compounded contracted COLA Provision percentage.
(example based on the 2% contracted COLA Provision for CSU retirees)
First year of COLA, 2% (no compounding)
Second year of COLA, 2% = 2% x 1.02% + 2% = 4.04%
Third year of COLA, 2% = 4.04% x 1.02% + 2% = 6.12%
- Step 3
CalPERS uses the lesser of the two numbers from step 1 and 2, this is your COLA factor.
- Step 4
CalPERS then calculates the COLA for each retiree.
Your BASE year gross annuity amount x the COLA Factor = your individual COLA