This bill mandates that starting January 1, 2026, any public power district in Nebraska that operates a defined benefit plan must provide a cost-of-living adjustment to retirees who are not eligible for social security benefits. The adjustment will be equal to the annual cost-of-living increase determined by the federal Social Security Administration.

The legislation aims to ensure that retirees from public power districts receive financial support that keeps pace with inflation, thereby enhancing their financial security in retirement. This requirement reflects a commitment to the well-being of retirees who may be relying solely on their defined benefit plans for income.