Your Cost-of-Living & Purchasing Power Protection Benefits
CalPERS pays two additional types of benefits to those eligible, the Purchasing Power Protection Allowance (PPPA) and Cost-of-Living Adjustments (COLA). There are many factors that affect these benefits, including your year of retirement, whether you were a State, school, or public agency employee, and the specific provisions of your former employer's contract with CalPERS.
The COLA benefit is an annual cost-of-living increase that begins in the second calendar year after retirement and each May annually after that. The PPPA is added protection against inflation for those whose benefits fall below minimum levels established by law and takes effect each May.
To help you better understand your PPPA and COLA, choose one of the topics below.