This bill proposes a cost of living adjustment (COLA) for retirees of the New Hampshire Retirement System who have been retired for at least 60 months as of July 1, 2023. The adjustment would be a supplemental allowance of 1.5% of the first $50,000 of a retired member's or beneficiary's annual retirement allowance. This supplemental allowance would become a permanent addition to the beneficiary's base retirement allowance and would be funded from the State Annuity Accumulation Fund. The effective date of the act is July 1, 2023.

The fiscal note attached to the bill indicates that there will be no impact on state, county, or local expenditures until FY 2026, at which point the state will incur an expenditure of $2,130,000 and political subdivisions will incur $8,760,000. The funding source for this expenditure is the State Annuity Accumulation Fund. The bill also notes that the New Hampshire Retirement System's actuary projects an increase in the actuarial accrued liability by $119.3 million due to the provisions in the bill, which will be amortized over a period not exceeding 20 years. Additionally, the New Hampshire Retirement System anticipates administrative costs related to reprogramming the pension administration system to accommodate the changes proposed by the bill.