This bill introduces a cost of living adjustment (COLA) for certain retired group II members of the New Hampshire retirement system, effective July 1, 2025. Specifically, it establishes a supplemental allowance of 5% for retirees who have been retired for at least 120 months but not more than 239 months, applicable to the first $50,000 of their retirement allowance. For those who have been retired for 240 months or more, the supplemental allowance increases to 10% of the first $50,000 of their retirement allowance. The total cost of this adjustment will be funded from the state general fund, with an estimated expenditure of $98.4 million in fiscal year 2025.

The bill adds a new section, RSA 100-A:41-f, to the existing retirement system laws, which outlines the eligibility criteria and the specifics of the COLA. It also stipulates that the supplemental allowance will become a permanent addition to the beneficiary's base retirement allowance and will be included in the monthly annuity payments. The language in the bill ensures that the necessary funds are appropriated from the general fund to cover the costs, while also indicating that there will be no impact on employer contributions. The bill is set to take effect on June 30, 2025.