The rate now
- 2026: 1%. Annual Increases fact sheet p. 1 (AI amount for 2026: 1.0%)
- 2027: 1% (for most eligible benefit recipients). Automatic Adjustment fact sheet p. 1
The AI is a permanent increase of the current benefit (compounded). C.R.S. 24-51-1002(2); 24-51-1009(4)
State law's starting rate is 1.5% for members who joined before 2007, "unless adjusted". The automatic adjustments have brought it to 1%. Annual Increases fact sheet p. 1; Automatic Adjustment fact sheet p. 1; C.R.S. 24-51-1002(2)
The automatic adjustment provision
Each year PERA checks whether it is on track to be fully funded. If it's behind, the AI drops by up to 0.25% (and contributions rise). If it's ahead, the AI rises by up to 0.25%. The AI stays between 0.5% and 2%. Annual Increases fact sheet p. 2, Automatic Adjustment Provision; Automatic Adjustment fact sheet p. 2
Possible rates: 0.5%0.75%1%1.25%1.5%1.75%2%
For PERA benefit structure members who began on or after Jan. 1, 2007, the AI is the lesser of the AI cap or the average monthly CPI-W for the prior calendar year, and cannot exceed 10% of the divisional AI reserve. Annual Increases fact sheet p. 2, AI Calculation Provision; C.R.S. 24-51-1009(4)
No AI was paid in 2018 or 2019. C.R.S. 24-51-1002(1.5); 24-51-1009(1.5)
When your first increase comes
You must receive a benefit for 36 months before your first AI, and (pre-2007 members) for 12 consecutive months before July, or (2007+ members) for the full preceding calendar year. Reduced service retirees must also reach age 60 or the age-and-service combination for an unreduced benefit by January 1 of the AI year. Annual Increases fact sheet pp. 1-2, First AI; C.R.S. 24-51-1001(1)(b.5), (3.5)
- Full benefit starting July 1, 2026: first AI July 1, 2029.
- Full benefit starting August 1, 2026: first AI July 1, 2030. One month later can mean a year later.
- Reduced benefit on PERA 9, born February 15, 1971, starting August 1, 2026: first AI July 1, 2032, the July after you're 60 by January 1.
These are our examples, worked with the engine.
Whether your benefit is full or reduced decides when the first increase comes. The Rule of 80 to 90 page shows when your table gives a full benefit, and the reduced retirement tables show what an early start pays. To see your own start date and first-year check, try the calculator with a PERA 2, age 61, 29 years example.
PERA doesn't spell out how it counts the 36 months of payments before your first annual increase.
What we use: We count 36 monthly payments from your retirement date to July 1. A July 1 retirement gets its first increase three years later.
Annual Increases fact sheet pp. 1-2, First AIIf you joined in 2020 or later and take a reduced benefit, PERA's fact sheet says your first annual increase waits until you reach age 60 (or the age-plus-service total for a full benefit). State law says age 64 (or a total of 94).
What we use: We follow PERA's fact sheet (age 60) and mark it here.
Annual Increases fact sheet p. 2; C.R.S. 24-51-1001(3.5)(b)(VI)State law sets the age-plus-service test for PERA 9 at 94 and the age at 64; PERA's fact sheet says age 60. Annual Increases fact sheet p. 2; C.R.S. 24-51-1001(3.5)(b)(VI)
What 1% a year adds
A $3,000 benefit starting July 1, 2026, if the AI stays at 1% (our assumption after 2027):
| July | AI | A month after |
|---|---|---|
| July 2029 | 1% | $3,030.00 |
| July 2030 | 1% | $3,060.30 |
| July 2031 | 1% | $3,090.90 |
| July 2032 | 1% | $3,121.81 |
| July 2033 | 1% | $3,153.03 |
| July 2034 | 1% | $3,184.56 |
Members who began on or before Dec. 31, 2006, were eligible to retire on Jan. 1, 2011, and have 25+ years may have a deferred benefit indexed by the AI if they don't retire when they terminate. Your PERA Benefits p. 13; C.R.S. 24-51-606.5
From the sources
- PERA retirees get an annual increase (AI), paid with the July benefit. It is 1.0% in 2026, and PERA expects 1.0% in 2027 for most retirees.Annual Increases fact sheet p. 1; Automatic Adjustment fact sheet p. 1
- If you retired on or after January 1, 2011, you must receive 36 months of benefits before your first AI. A July 1 retirement therefore gets its first AI three Julys later.Annual Increases fact sheet p. 1
- If you took a reduced retirement, you must also reach age 60, or the age-and-service total for an unreduced benefit, by January 1 of the AI year.Annual Increases fact sheet p. 2
- Check with PERAFor members who joined in 2020 or later, state law sets that reduced-retirement test at age 64 or a combined age plus service of 94. PERA's fact sheet says age 60.C.R.S. 24-51-1001(3.5)(b)(VI); Annual Increases fact sheet p. 2
- The AI can change each year under the automatic adjustment provision. It rises by up to 0.25% when PERA is ahead of its funding schedule, up to a 2.0% cap, and falls by up to 0.25% when PERA is behind, down to a 0.5% floor.Annual Increases fact sheet p. 2; Automatic Adjustment fact sheet p. 2
- No AI was paid in 2018 or 2019.C.R.S. 24-51-1002(1.5), 24-51-1009(1.5)
- If you joined on or after January 1, 2007, your AI is the lesser of the AI cap or the prior year's average CPI-W. It also can't use more than 10% of your division's AI reserve.Annual Increases fact sheet p. 2, AI Calculation Provision
Questions
What is PERA's annual increase?
A permanent raise to retirees' benefits, paid with the July check. It's 1% for 2026 and 2027. Each increase builds on the last.
When do I get my first annual increase?
If you retired on or after January 1, 2011, after 36 months of payments. A July 1 retirement gets its first increase three Julys later. If you took a reduced benefit, you must also reach age 60, or the age-plus-service total for a full benefit, by January 1 of that year.
Can the annual increase change?
Yes. Under the automatic adjustment provision it moves by up to 0.25% a year, between 0.5% and 2%, depending on whether PERA is on track to be fully funded.
Was there ever a year with no increase?
Yes. No increase was paid in 2018 or 2019.
Source: Your PERA Benefits: A Summary of the Colorado PERA Defined Benefit Plan, Revised April 2026, p. 13. Also: Annual Increases fact sheet pp. 1, 1-2, 2; Automatic Adjustment fact sheet pp. 1, 2; C.R.S. 24-51-413, 24-51-606.5, 24-51-1001, 24-51-1002, 24-51-1009. Last reviewed .