This bill introduces an annual cost-of-living adjustment (COLA) for members of the Iowa public employees retirement system who retire on or after July 1, 2026. The new provisions, added to Section 97B.49A and Section 97B.49B, stipulate that the monthly retirement allowance for these members, as well as for their beneficiaries and contingent annuitants, will be increased by 1 percent each July 1. However, eligibility for this adjustment requires that the member must be at least 55 years old at the time of their retirement. Additionally, those who receive the COLA will not be eligible for retirement dividends as outlined in section 97B.49F.

The bill aims to provide financial support to retired public employees by ensuring their retirement allowances keep pace with inflation. It mirrors a similar adjustment already in place for retired sheriffs and deputy sheriffs, which currently allows for a 1.5 percent annual increase. The introduction of this COLA is intended to enhance the financial security of retired members and their beneficiaries, acknowledging the need for adjustments in retirement benefits over time.

Statutes affected:
Introduced: 97B.49A, 97B.49B