This bill enacts a new provision, R.S. 11:542.4, to establish a cost-of-living adjustment (COLA) for retirees and beneficiaries of the Louisiana State Employees' Retirement System, which will be payable on July 1, 2026. The COLA will be funded exclusively from the experience account and is available to retirees who are at least 60 years old and have received benefits for at least one year by June 30, 2026. Additionally, it extends eligibility to nonretiree beneficiaries and disability retirees under specific conditions related to the duration of benefit payments.

The adjustment will apply only to the first $81,201 of a retiree or beneficiary's benefit and will be calculated 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 accordance 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.