§ 21330 Second Tier Annual Adjustment

• •If you retire under the Second Tier plan, your monthly pension gets a raise every year starting two years after you retire.
• •The raise happens on April 1st, but you get the money on May 1st.
• •Your pension goes up by 3% each year, and this 3% adds up on top of last year's raise (like interest on interest).
• •The raise is based on how many years it's been since you retired.

Imagine you retired in 2020 under the Second Tier plan. Your first pension was $1,000 a month.

In 2022 (two years after retiring), your pension gets its first raise. It goes up by 3%, so your new monthly pension is $1,030. The next year, it goes up by 3% again, but this time it's 3% of $1,030, not the original $1,000. So, it keeps growing a little more each year.