Post Retirement Pension Adjustment (PRPA) for 2021
There will be no Post-Retirement Pension Adjustment (PRPA) for 2021. The PRPA is based on the Consumer Price Index (CPI) for Anchorage and is granted when the CPI increases from one year to the next. Since the CPI in Anchorage dropped 0.179 points between 2019 and 2020, no PRPA will be granted for 2021.
- The statutory authority for the Post-Retirement Pension Adjustment (PRPA) is contained in AS 39.35.475 and AS 14.25.143.
- The PRPA is determined per statute based on the Anchorage Consumer Price Index (CPI) as calculated by the Federal Bureau of Labor Statistics (BLS).
- The Anchorage CPI is based on the wages of urban wage earners and clerical workers.
- Per statute, when the CPI increases, PRPAs are granted. When the CPI decreases, PRPAs are not granted.
- The Division of Retirement and Benefits does not have the authority to change the Anchorage CPI or the PRPA calculation.
- According to BLS, the Anchorage CPI decreased 0.179 or 0.0007934% between 2019 and 2020.
- Therefore, a Post-Retirement Pension Adjustment (PRPA) will not be granted in 2021 (FY22 benefit year).
- 1987 was the last time the Anchorage CPI dropped and accordingly, a PRPA was not granted that year.
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