Monday, June 8, 2015

COLA Bill Update

HB 42, by Representative Sam Jones, was amended and passed in the Senate Finance Committee and on the Senate Floor. In its current form, the bill would authorize a COLA of up to 1.5 percent for eligible LASERS retirees and beneficiaries, starting July 1, 2016.

The date change for the COLA took into account testimony from the Governor's Office that paying two COLAs in a row would cause concerns for the State's bond rating agencies. Eligible LASERS retirees and beneficiaries received a 1.5 percent COLA in 2014.

The 2016 timing would be consistent with the reforms enacted last legislative session which only authorize a COLA every other year until the System is at least 85 percent funded. The amendments also make changes that positively impact the long-term funded status of the System.

HB 42 will next go back to the House of Representatives for concurrence in the Senate amendments.

Meeting schedules are subject to change. Check the LASERS website daily for updates and for detailed information about proposed retirement legislation that may impact LASERS if passed.

View Senate and House Retirement Committee meetings here.

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