PERS Reports that Negative Inflation
May Affect Retiree COLAs

 

According to a PERS staff report, inflation was a negative 0.4 percent in calendar year 2009, which is a fairly uncommon development. Under law, most PERS retirees are entitled to an annual cost-of-living adjustment (COLA) of up to 2 percent compounded annually. Most members who retired prior to 2007 will receive a 2 percent COLA in May 2010. However, due to negative inflation in 2009, members who retired in 2007 or later will see an increase of less than 2 percent or no increase at all. A small percentage of PERS retirees who are eligible for COLAs of 3 percent or more will see a decrease in their monthly retirement benefit payment in May.

For more information, see the PERS agenda item here.

 

 

 

 

 

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