How the CalSTRS COLA works
CalSTRS adds a 2% benefit adjustment each September 1, starting the September after the first anniversary of your retirement. It is simple, not compounded: each year adds 2% of your original monthly benefit. CalSTRS also pays a quarterly supplemental payment (SBMA) to keep your benefit at no less than 85% of its original purchasing power.
What to expect in 2027
The next 2% adjustment arrives with the September 2027 benefit, paid October 1, 2027.
What a COLA is worth over time
On a $3,000 monthly pension, a 2% simple increase adds $60 a month every year, so after 20 years the check is $4,200. A 2% compounded increase reaches about $4,460. A plan with no automatic increase stays at $3,000 unless lawmakers act, and at 3% inflation that check buys about 45% less after 20 years. Our COLA guide compares how other plans handle it.