House Bill No. [insert bill number] enacts R.S. 11:542.4, which establishes a cost-of-living adjustment (COLA) for retirees and beneficiaries of the Louisiana State Employees' Retirement System, effective July 1, 2026. The bill allows the board of trustees to grant this adjustment, funded exclusively from the experience account, to eligible retirees who are at least 60 years old and have received benefits for at least one year by June 30, 2026. Additionally, nonretiree beneficiaries and disability retirees may also qualify under specific conditions outlined in the bill.

The COLA will be applicable only to the first $81,201 of a retiree or beneficiary's benefit and will be determined by the system's actuary, with a maximum increase of 2% of the eligible benefit amount. The funding for this adjustment will come from additional employer contributions, in compliance with the Louisiana Constitution. The bill is set to take effect on June 30, 2026, unless vetoed by the governor and subsequently approved by the legislature, in which case it will take effect on the later of the two dates.