Bill > HB1294

This bill provides for cost-of-living adjustments (COLAs) to the retirement allowances of Plan 1 retirees of the Teachers' Retirement System (TRS) and Public Employees' Retirement System (PERS). Starting on July 1, 2023, and every year thereafter, the Department of Retirement Systems will calculate the annual COLA adjustment based on the ratio of the current year's consumer price index (CPI) for the Seattle area compared to the CPI from the prior year or the year of retirement, whichever is later. The COLA cannot result in a lower retirement allowance, cannot exceed 3% in the initial adjustment, and cannot differ from the previous year's adjustment by more than 3%. The bill also declares an emergency, allowing it to take effect on July 1, 2023.