Automatic increase equal to 2% of your initial benefit, beginning September 1 after the first anniversary of your retirement; your retirement date must be before September 1 to receive it on September 1 of the next year. Shown in the October 1 payment. Not compounded or tied to the cost of living. Handbook p. 93, Annual benefit adjustment
- Retire on July 1, 2026: first increase on September 1, 2027.
- Retire on September 1, 2026: first increase on September 1, 2028.
How it adds up
Using Angela's $3,192.92 Member-Only Benefit from the handbook (p. 75), retiring July 1, 2026. Each raise is 2% of $3,192.92.
| From | Monthly | Up from start |
|---|---|---|
| Start | $3,192.92 | — |
| September 1, 2027 | $3,256.78 | +$63.86 |
| September 1, 2028 | $3,320.64 | +$127.72 |
| September 1, 2029 | $3,384.50 | +$191.58 |
| September 1, 2030 | $3,448.35 | +$255.43 |
| September 1, 2031 | $3,512.21 | +$319.29 |
Unofficial. CalSTRS figures the actual amounts. Handbook p. 93, Annual benefit adjustment
Purchasing power protection
Supplemental benefit payments, paid quarterly, go to retirees and beneficiaries whose benefits have fallen below a set level of purchasing power, subject to available funds. The level is currently 85% of your initial benefit (base allowance). Handbook p. 93, Purchasing power protection
The handbook describes the purchasing power level two slightly different ways and doesn't give the payment formula.
We describe it but don't calculate it.
p. 93, Purchasing power protectionWhat the handbook says
- Each year you get an automatic increase of 2% of your initial benefit, starting September 1 after the first anniversary of your retirement. It isn't compounded or tied to inflation.p. 93, Annual benefit adjustment
- Retire before September 1 to receive the first increase on September 1 of the next year. It shows up in the October 1 payment.p. 93, Annual benefit adjustment
- For members retiring on or after January 1, 2014, the Legislature can't reduce the 2% adjustment. For earlier retirees it isn't contractually guaranteed, though it has never been reduced since 1972.p. 93, Annual benefit adjustment
- Purchasing power protection: quarterly supplemental payments go to retirees whose benefits have fallen below 85% of their purchasing power, subject to available funds.p. 93, Purchasing power protection
- Those who began receiving a benefit before 1999 get an additional quarterly benefit, effective July 1, 2023, based on the year they retired, became disabled or died.p. 93, Supplemental Benefit Maintenance Account payment increases for some members
- The longevity bonus is included in the 2% annual adjustment but not in the quarterly purchasing power payment.p. 67, Longevity bonus
Questions
Does CalSTRS have a COLA?
Yes. CalSTRS calls it the annual benefit adjustment: 2% of your initial benefit, added each year. It is not compounded, so each raise is the same dollar amount.
When do I get my first 2% increase?
On September 1 after the first anniversary of your retirement. Retire before September 1 and you get it on September 1 of the next year. It shows up in the October 1 payment.
Source: CalSTRS Member Handbook, 2026 edition (Jan. 1, 2026 - June 30, 2027), pp. 21, 67, 93, 127, 137. Last reviewed .