For most eligible retirees and benefit recipients, the annual increase (AI) to be paid on July 31 will be 2 percent. Other eligible retirees and benefit recipients, specifically those who began PERA membership on and after January 1, 2007, will have an AI of 1 percent.

For retirees and benefit recipients in the PERA benefit structure who began membership before January 1, 2007, and all benefit recipients in the Denver Public Schools (DPS) benefit structure, the amount of your AI is tied to PERA’s annual investment performance. If PERA’s investment performance is above zero for the calendar year, then the AI paid the following July will be 2 percent. If PERA’s investment performance is less than zero for the calendar year then the AI paid the following July will be based on the average of the monthly CPI-W amounts for the previous calendar year, not to exceed 2 percent.

PERA’s investment return for the 2016 calendar year was 7.3 percent, thereby granting a 2 percent AI.

For retirees and benefit recipients who began PERA membership on and after January 1, 2007, the AI calculation is the lesser of 2 percent or the average of the monthly CPI-W amounts for the prior calendar year. In 2016, the average of the monthly CPI-W was just under 1 percent.

Remember that you may have to meet certain eligibility requirements before receiving your first AI. PERA’s Annual Increases fact sheet has more information.

The CPI-W is the national Consumer Price Index for Urban Wage Earners and Clerical Workers published by the United State Department of Labor.