CalPERS has announced the following Cost-of-Living Adjustment for California State University retirees for 2022:
| Year of Retirement | % COLA Increase Effective May 1, 2022 |
|---|---|
| 2003 & Earlier | 2.00% |
| 2004 | 2.19% |
| 2005 | 3.59% |
| 2006-2014 | 4.70% |
| 2015 | 3.13% |
| 2016 | 2.39% |
| 2017 | 2.52% |
| 2018 | 2.96% |
| 2019 | 2.77% |
| 2020 | 2.00% |
| 2021 | Not eligible |
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
[Webmaster's Note: The COLAs for more recent retirees are more than 2%, because these retirees did not receive the full 2% COLA for several years owing to low inflation rates. The high inflation rate during 2021 then required CalPERS to provide higher COLAs for these retirees to allow them to "catch up" to the full 2% compounded.