This bill requests the creation of a work group to study the Public Employees Retirement Association (PERA) fund, focusing on policies affecting benefits and the fund's solvency. The work group will examine the impact of changes made to retiree cost-of-living adjustments (COLAs) since 2019, which have significantly reduced retirees' spending power and contributed to the fund's rising unfunded liability. The group will also explore potential improvements to restore compounding annual adjustments tied to inflation, assess factors affecting fund solvency, and evaluate the implications of employer and employee contributions on future retirees.

The work group will consist of nine members with expertise in finance, budget, and government policy, including representatives from the PERA and legislative committees. It is tasked with developing recommendations to enhance fund solvency without negatively impacting retirees, and it will seek assistance from an outside entity with pension fund expertise. The work group is expected to report its findings and recommendations to the appropriate legislative committees by December 31, 2026.