This bill amends the Public Employees Retirement Act by repealing and reenacting Section 10-11-118, which pertains to cost-of-living adjustments (COLAs) for qualified pension recipients. The new provisions establish that qualified pension recipients, which include normal retired members, disability retired members, and survivor beneficiaries, will receive COLAs that are equal to the adjustments determined by the federal Social Security Administration for Social Security and Supplemental Security Income. The retirement board is tasked with certifying these adjustments annually, starting January 1, 2027, and the COLA will be applied to pensions beginning July 1, 2027.

Additionally, the bill appropriates $50 million from the general fund to the public employees retirement association for fiscal year 2027 and subsequent years to ensure adequate funding for these COLAs. It also allows qualified pension recipients the option to decline the increase by providing written notice to the association at least thirty days prior to the effective date of the increase. The provisions of this act are set to take effect on December 1, 2026.

Statutes affected:
introduced version: 10-11-118