§ 21329 Pension Adjustment Limits

Government Code·California

AI SummaryVerified

Key Takeaways

•The yearly adjustment to your allowance can't be less than 1% or more than 6% of your starting amount.
•Your monthly allowance can't go up by more than 2% each year, adding up over time.
•Your monthly allowance will never be less than what you started with.
•If the interest rate is below 4.5%, there’s no adjustment that year.

Example

Imagine you get a monthly allowance of $1000. One year, the adjustment is 3%, but the next year, the interest rate drops to 4%.

The first year, your allowance goes up by 3% ($30), so you get $1030. The next year, since the interest rate is below 4.5%, your allowance stays the same ($1030).

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 21329 Pension Adjustment Limits

The adjustments provided by this article are subject to the following limitations: (a) No adjustment shall be made for any year for which the adjustment is less than 1 percent of the base allowance, and the adjustment for any year shall not exceed 6 percent of the base allowance. (b) No monthly allowance in any year may exceed an amount equal to the base allowance increased by 2 percent per year compounded for the number of years intervening between the end of the base year and the beginning of the calendar year in which the adjustment is made. (c) No monthly allowance in any year shall be less than the base allowance. (d) No adjustment shall be made in any year in which the actuarial interest rate is less than 4.5 percent. (Added by Stats. 1995, Ch. 379, Sec. 2. Effective January 1, 1996.)

Last verified: January 22, 2026

Key Terms

base allowance adjustment actuarial interest rate

References

Official text at leginfo.legislature.ca.gov
California Legislature. Government Code. Section 21329.

§ 21329 Pension Adjustment Limits

Government Code·California

AI SummaryVerified

§ 21329 Pension Adjustment Limits

Key Takeaways

•The yearly adjustment to your allowance can't be less than 1% or more than 6% of your starting amount.
•Your monthly allowance can't go up by more than 2% each year, adding up over time.
•Your monthly allowance will never be less than what you started with.
•If the interest rate is below 4.5%, there’s no adjustment that year.

Example

Imagine you get a monthly allowance of $1000. One year, the adjustment is 3%, but the next year, the interest rate drops to 4%.

The first year, your allowance goes up by 3% ($30), so you get $1030. The next year, since the interest rate is below 4.5%, your allowance stays the same ($1030).

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 21329 Pension Adjustment Limits

Last verified: January 22, 2026

Key Terms

base allowance adjustment actuarial interest rate

References

Official text at leginfo.legislature.ca.gov
California Legislature. Government Code. Section 21329.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References