Automatic Post Retirement Pension Adjustment (PRPA)
PRPA to be paid with July 2012 check
The automatic PRPA is payable to a Public Employees’ Retirement System (PERS) retiree under age 60, if retired for five years or more on or before July 1, 2012, and a Teachers’ Retirement System (TRS) retiree under age 60, if retired for eight years or more on or before July 1, 2012.
In addition to the above requirements, a retiree must have been receiving a benefit in the prior year (2011) to be eligible for the 2012 PRPA. Eligible recipients, who have not received pension benefits during the entire preceding calendar year, will receive a prorated PRPA.
If you meet these requirements or are age 60-64 on July 1, 2012, you will receive 50% (1.646%) of the Consumer Price Index (CPI) change during 2011.
Retirees age 65 or older and all disability benefit recipients receive 75% (2.469%) of the increase in the CPI. The PRPA for survivor benefit recipients is calculated based on the member’s eligibility.
The increase in CPI for the 2012 PRPA is 3.293%.
If you do not meet any of the above criteria, you are not eligible.
Due to fund conditions, the Division did not recommend an ad hoc PRPA for 2012. The ad hoc PRPA is defined in statute as, “…based on the financial condition of the retirement funds.”
- This example shows a retiree who is receiving a benefit from the PERS.
- Your check stub will show more than one benefit if you worked for both retirement systems or if you are also receiving a survivor’s benefit.
- Prior PRPAs: The combined monthly amount of all PRPAs paid from the date you retired through June 30, 2012.
- 2012 Automatic PRPA: This is effective July 1, 2012, based on the change in consumer price index (CPI).
Monthly check stub example:
|PERS original base $xx.xx||PERS dental, vision, audio $xx.xx|
|PERS prior prpas $xx.xx||PERS fed income withhold $xx.xx|
|PERS 2012 automatic prpa $xx.xx||PERS optional life insur $xx.xx|
|PERS long term care - ret $xx.xx|