CalPERS pensions to grow slightly in 2020 with cost-of-living increase for retirees

Most people with CalPERS pensions will receive cost-of-living increases of 1.81 or 2 percent in 2020, according to newly published numbers from the retirement fund.

The Consumer Price Index, on which the annual increase is based, increased 1.81 percent in 2019, according to documents prepared for an upcoming meeting of the California Public Employees’ Retirement System’s board. The increase is added to pension checks in May.

This year’s increase is a little below the 20-year average rate of 2.17 percent, according to the documents.

Retirees from California government agencies receive the increase every year the index goes up by at least 1 percent. If it’s lower than that, they don’t get the COLA.

The percentage increase varies depending on the year employees retired and the agency from which they retired.

More than 95 percent of CalPERS retirees will receive an increase of either 1.81 percent or 2 percent, according to CalPERS.

The rest, including those who retired before 1979, are eligible for increases up to a maximum of 3.62 percent. Members who retired in 2019 are not yet eligible for an increase.

About 700,000 people, including retirees, their beneficiaries and survivors, receive CalPERS pensions. The pensions average $37,000 per year.