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 new section, RSA 100-A:41-f, which stipulates that retired group II members who have been retired for at least 120 months but not more than 239 months will receive a supplemental allowance of 5% on the first $50,000 of their retirement allowance. For those who have been retired for 240 months or more, the supplemental allowance will be 10% of the first $50,000 of their allowance. The total cost of this adjustment will be funded from the state general fund, with an estimated expenditure of $98.4 million in FY 2025.

Additionally, the bill ensures that the supplemental allowance becomes a permanent addition to the beneficiary's base retirement allowance and will be included in the monthly annuity payments. The payment of the supplemental allowance is to be made as soon as administratively feasible after the effective date, but no later than November 1, 2025. The bill also includes appropriations from the general fund to cover the costs associated with this adjustment, while noting that there will be no impact on employer contributions as the funding is terminally sourced from the general fund.