Post Retirement Pension Adjustment (PRPA)
- Automatic Post Retirement Pension Adjustment (Automatic PRPA)
- Ad Hoc Post Retirement Pension Adjustment (Ad Hoc PRPA)
Automatic Post Retirement Pension Adjustment (Automatic PRPA)
The 2014 automatic Post Retirement Pension Adjustment (PRPA) is being paid with the July 2014 check.
In order to receive an Automatic PRPA, one must be:
- A retiree who received a pension benefit in the prior year (2013) (eligible recipients who have received at least one but not all pension benefits during the entire preceding calendar year will receive a prorated Automatic PRPA); and
- A Public Employees’ Retirement System (PERS) retiree over age 60; or
- A Teachers’ Retirement System (TRS) retiree over age 60; or
- A PERS retiree under age 60, if retired for five years or more on or before July 1, 2014; or
- A TRS retiree under age 60, if retired for eight years or more on or before July 1, 2014.*
Retirees who meet the above requirement and are age 64 or younger on July 1, 2014, will receive 50% (1.646%) of the change in Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) in Anchorage [PDF] that occurred during 2013, which was an increase of 3.292%.** Retirees age 65 or older and all recipients of disability benefit receive 75% (2.469%) of the increase in the CPI-W. The Automatic PRPA for recipients of survivor benefit is calculated based on the deceased member’s eligibility.
*If you do not meet any of the above criteria, you are not eligible for the 2014 Automatic PRPA.
**If there is no increase in CPI-W during the previous calendar year, an Automatic PRPA will not be issued.
Example of Monthly Benefits Summary for Retiree who Receives an Automatic PRPA
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, 2014.
- 2014 Automatic PRPA: This is effective July 1, 2014, based on the change in consumer price index (CPI-W).
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 2014 automatic prpa $xx.xx||PERS optional life insur $xx.xx|
|PERS long term care - ret $xx.xx|
Ad Hoc PRPA
In order for an Ad Hoc Post Retirement Pension Adjustment (Ad Hoc PRPA) to be granted, two things must be determined by the administrator of the retirement fund(s) (the Division of Retirement and Benefits):
- There must be an increase to the Cost of Living Index (CPI)
- The financial condition of the retirement fund(s) is 105% funded.
The current condition of the retirement fund(s) is not 105% funded per statute, so an Ad Hoc PRPA was not granted. Only retirees from Tier I PERS or TRS are eligible to receive the Ad Hoc PRPA, if one is granted.