Annual Increase Reminder
The next Annual Increase (AI) will be paid in July 2023 and will be 1.0% for eligible benefit recipients in the DPS benefit structure or those who began Colorado PERA membership in the PERA benefit structure on or before December 31, 2006.
If you began PERA membership in the PERA benefit structure on or after January 1, 2007, and you are eligible for an AI in 2023, your AI will be the lesser of 1.0% or the average of the monthly CPI-W for the previous calendar year. The sum of the AIs paid to a division’s benefit recipients cannot exceed 10% of the divisional AI reserve.
PERA anticipates releasing the official AI amount for this group in late June/early July upon the completion of the actuarial valuation that occurs in conjunction with the release of PERA’s Annual Comprehensive Financial Report.
Keep in mind that you may have to meet certain eligibility requirements before receiving your first AI. Eligibility for the AI and the amount of the AI depends on the following:
- Whether or not you received an AI prior to May 1, 2018
- Your benefit structure (PERA or DPS)
- Your membership start date
- Effective date of retirement
- The type of benefit you are receiving (full service, reduced service, disability, or survivor)
- For reduced service retirement: if you were eligible to retire on January 1, 2011
State law specifies that the AI may adjust in the future to ensure that PERA is able to pay off its unfunded liability within 30 years. Each June, PERA announces its progress toward the funding goal along with any automatic adjustments:
- If PERA is behind schedule, the AI can be decreased by up to 0.25% in one year, not to fall below 0.5%.
- If PERA is ahead of schedule, the AI could increase by up to 0.25% in one year, not to exceed 2%.
Any adjustment to the AI paid in 2024 will be based on the information released in June 2023.
Review the Automatic Adjustment Provision fact sheet for more information about adjustments that may occur depending on if PERA is ahead of or behind the 30-year funding goal